Fed’s Powell opens door to potential rate cuts at Jackson Hole
Investing.com - DA Davidson has reiterated its Buy rating and $2.50 price target on BRC Inc. (NYSE:BRCC), citing the company’s continued strong performance in the packaged coffee segment. The stock, currently trading at $2.05, has shown remarkable momentum with a 26.49% gain over the past week. According to InvestingPro data, the company, with a market cap of $499.22M, is currently trading near its Fair Value.
According to Nielsen IQ data tracked by DA Davidson, BRC’s packaged coffee business grew 32.4% for the four-week period ending July 12, 2025, significantly outpacing the broader industry’s 9.7% growth during the same timeframe. With a healthy gross margin of 39.54% and annual revenue of $383.07M, the company maintains strong operational metrics despite market challenges.
The 32.4% growth represents a slight deceleration from the 33.2% growth recorded in June, but remains consistent with BRC’s performance over the past three months, according to the research firm.
The overall packaged coffee industry showed sales growth of 9.7% for the period, similar to the 9.6% increase observed in June, while the ready-to-drink (RTD) coffee segment posted a 3.3% increase, a slight improvement from June’s 3.5% decrease.
BRC Inc. competes across multiple beverage categories including packaged coffee, concentrates, espresso, ready-to-drink coffee, and energy drinks, with its packaged coffee segment showing the strongest performance.
In other recent news, BRC Inc. announced a follow-on public offering, raising $35 million to support its energy drink expansion. The offering involves 28 million shares of Class A common stock priced at $1.25 per share, with an option for underwriters to purchase an additional 4.2 million shares. Additionally, DA Davidson has maintained a Buy rating on BRC Inc., with a price target of $2.50, following the company’s $40.25 million equity raise. This equity raise includes a $35 million base and a 15% potential overallotment.
BRC Inc. also reaffirmed its annual financial guidance for the fiscal year ending December 31, 2025, consistent with its previous outlook. In leadership changes, the company appointed Matthew Amigh as Chief Financial Officer, effective July 7, 2025. Amigh brings extensive experience, having previously served as CFO at Ethos (NSE:ETHO) Pet Nutrition and Bulletproof 360. The company’s recent developments reflect its ongoing strategic initiatives and financial positioning.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.