BellRing Brands stock target cut to $86 at Jefferies, retains Buy

Published 05/02/2025, 12:18
BellRing Brands stock target cut to $86 at Jefferies, retains Buy

On Wednesday, Jefferies maintained a Buy rating on BellRing Brands (NYSE:BRBR) but reduced the price target to $86.00 from the previous $90.00. The company’s strong performance is evident in its impressive 21% revenue growth over the last twelve months, according to InvestingPro data. The firm pointed to a strong start to the year for BellRing Brands, citing several demand drivers including display enhancements, advertising, and packaging changes that are expected to boost the company’s performance.

Despite an anticipated slower second half of the year due to known shipment and cost phasing, Jefferies highlighted that the strong consumption trends indicate a healthy underlying demand for BellRing Brands’ products. This demand is expected to accelerate moving forward. InvestingPro analysis reveals that three analysts have recently revised their earnings expectations upward, suggesting growing confidence in the company’s outlook.

The adjustment in the price target comes as BellRing Brands’ shares experienced a 4% decline. With the stock currently trading at $74.92, between its 52-week range of $48.06 to $80.67, Jefferies sees this dip in share price as an opportunity for investors. The firm reiterated its confidence in the company’s prospects by reiterating a Buy rating, aligning with the broader analyst consensus of 1.53 (where 1 is Strong Buy).

The research firm’s comments suggest that while there may be a perceived slowdown in the latter half of the year, the overall market demand for BellRing Brands remains robust. This perspective is based on the company’s solid start to the year and the upcoming demand drivers that are soon to take effect.

Investors have been given a signal that despite the recent decrease in share value, the company’s stock is still seen as a valuable buy according to Jefferies. The firm’s maintained Buy rating and adjusted price target reflect their outlook on the company’s future performance.

In other recent news, BellRing Brands has been the focus of various analyst firms. DA Davidson maintained a Neutral rating on the company’s stock with a price target of $90.00, citing the company’s strong start to fiscal year 2025. However, the analyst expressed caution regarding the stock’s potential for further gains.

On a similar note, Stifel reiterated its Buy rating on BellRing Brands, emphasizing the company’s impressive first-quarter financial results for fiscal year 2025. The firm specifically noted a 25% increase in EBITDA to $125.3 million, which surpassed both Stifel’s own estimates and the consensus estimate.

Truist Securities maintained a Hold rating on BellRing Brands with a price target of $75.00, acknowledging another strong quarter for the company, particularly the accelerated consumption of Premier Protein Ready-To-Drink products.

In addition, BellRing Brands announced significant changes to its corporate governance structure, including the declassification of its Board of Directors, following approval from its shareholders.

Lastly, Citi analysts raised their price target on BellRing Brands to $90 from $83 while maintaining a Buy rating, anticipating that BellRing Brands will outperform consensus estimates for both organic sales growth and EBITDA in the first quarter of 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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