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Investing.com - DA Davidson has reiterated a Buy rating and $2.50 price target on BRC Inc. (NYSE:BRCC), following the company’s announcement of a $40.25 million equity raise. According to InvestingPro data, BRC maintains healthy liquidity with a current ratio of 1.3 and operates with moderate debt levels.
The equity raise includes a $35 million base and 15% potential overallotment, which equates to 32.2 million new primary shares at $1.25 per share. This represents a 17% discount to the last market close price.
BRC Inc. plans to use the funds to support its energy drink launch and for other general corporate purposes, according to DA Davidson.
Along with the equity raise announcement, BRC pre-announced its second-quarter 2025 guidance, with revenue and EBITDA figures coming in at or above consensus expectations.
The company’s gross margin guidance for the quarter is in line with previous expectations, DA Davidson noted in its analysis of the pre-announcement.
In other recent news, BRC Inc. has announced a follow-on public offering of 28 million shares of Class A common stock, aiming to raise $35 million. The company plans to use the proceeds to support the growth of its Black Rifle Energy beverage line and repay revolving credit. Telsey Advisory Group maintained its Outperform rating on BRC, viewing the capital raise as a prudent move for maintaining liquidity. Additionally, BRC reaffirmed its annual financial guidance for the fiscal year ending December 31, 2025, consistent with prior projections. The company also appointed Matthew Amigh as its new Chief Financial Officer, bringing over 25 years of financial and operational experience. In governance matters, the company held its annual stockholder meeting, electing three Class III directors and ratifying Ernst & Young LLP as the independent accounting firm for the fiscal year. These developments highlight BRC’s ongoing efforts to strengthen its financial position and leadership team.
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