BellRing Brands stock target cut to $82 at Evercore ISI

On Wednesday, Evercore ISI analysts made adjustments to BellRing Brands (NYSE:BRBR), a company known for its portfolio of nutrition products. The firm has lowered its price target to $82 from the previous $90 while maintaining an Outperform rating on the stock. This change comes after a significant 19% drop in the company’s shares the previous day, bringing the stock to $63.55. According to InvestingPro data, the stock appears slightly undervalued at current levels, with analyst targets ranging from $73 to $94.

The decision to adjust the price target is based on revised EBITDA estimates for the years 2025 and 2026, which have been reduced by 2-4%. This revision is attributed to an anticipated one-time retailer inventory adjustment and increased sales, general, and administrative expenses due to heightened marketing efforts. The company’s current EBITDA stands at $452.6 million, with an EV/EBITDA multiple of 20x, reflecting its growth profile.

Despite the lower price target, Evercore ISI remains optimistic about BellRing Brands’ future performance. The firm’s analysts are encouraging buying the stock, predicting an acceleration in organic sales growth to mid-teens by the fourth fiscal quarter and sustaining a 10%+ organic sales growth and 9%+ EBITDA growth in FY26.

The new price target of $82 reflects these updated EBITDA estimates and corresponds to roughly 21 times the expected value to EBITDA ratio. This valuation is based on comparisons with similar high-growth beverage peers, where BellRing Brands shows a price-to-earnings growth (PEG) ratio of 0.4x against a peer average of 2.2x, and also incorporates discounted cash flow (DCF) analysis. Get access to more detailed valuation metrics and 11 additional key insights about BRBR through InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.

Evercore ISI’s stance on BellRing Brands remains positive, with expectations for the company’s organic sales and EBITDA to continue growing in the coming fiscal years, despite the recent adjustment to the company’s price target and EBITDA estimates.

In other recent news, BellRing Brands reported its second-quarter 2025 earnings, meeting analyst expectations with an earnings per share of $0.53 and slightly surpassing revenue forecasts with $588 million. Despite this, the company’s stock experienced a notable decline, attributed to broader market concerns and potential tariff impacts. Analysts from Jefferies, Citi, and JPMorgan have adjusted their price targets for BellRing Brands to $80, reflecting a cautious yet optimistic view on its future performance. Jefferies and Citi both maintained a Buy rating, while JPMorgan kept an Overweight rating, indicating confidence in the company’s long-term prospects despite recent challenges.

BellRing Brands disclosed that its second-quarter revenue increased by 19% year-over-year, with adjusted EBITDA rising by 14% to $119 million. However, the company faced potential sales challenges in the third quarter due to inventory reductions by a major club customer. Analysts at Citi anticipate that sales growth for BellRing Brands could improve in the fourth quarter, potentially exceeding previous expectations. Discussions with BellRing’s management have reassured analysts that the inventory reduction does not indicate a decrease in demand for Premier protein shakes.

The company’s net sales guidance for the full year remains between $2.26 billion and $2.34 billion, with a projected 13-17% increase. BellRing Brands continues to emphasize innovation and expanding household penetration, with new products such as the Premier Protein Indulgence line showing promising starts. Despite recent stock price declines, analysts believe the fundamentals of BellRing Brands suggest several upsides for the stock moving forward.

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