BRC stock price target lowered to $2.50 by Telsey on mixed outlook

Investing.com - Telsey Advisory Group has lowered its price target on BRC Inc. (NYSE:BRCC) to $2.50 from $4.00 while maintaining an Outperform rating on the stock. According to InvestingPro data, the stock has declined over 56% year-to-date, though analysis suggests it may be undervalued at current levels.

The adjustment follows BRC’s second-quarter 2025 results, which aligned with the company’s July 16 pre-announcement showing sales growth of 6.5% to $94.8 million and adjusted EBITDA of $2.4 million. The company, currently valued at $345 million, has shown mixed financial health indicators, with InvestingPro data revealing a solid current ratio of 1.29 despite challenging market conditions.

BRC maintained its full-year 2025 guidance, projecting sales growth of 1%-9% to $395 million-$425 million and adjusted EBITDA of $20 million-$30 million. For deeper insights into BRC’s financial outlook and access to 10+ additional ProTips, consider exploring the comprehensive research available on InvestingPro.

The company reported significant wholesale distribution gains in the second quarter, with packaged coffee distribution up 14.9% to 56.6% ACV, ready-to-drink coffee distribution increasing 6.1% to 53.5%, and Black Rifle Energy reaching 22.5% ACV across FDM and convenience store retailers.

Telsey noted that BRC’s adjusted EBITDA should improve in the second half of 2025 compared to the first half, supported by price increases and cost management initiatives expected to save $8 million-$10 million in 2025, though partially offset by headwinds from higher coffee prices, new tariffs, and select trade promotions.

In other recent news, Black Rifle Coffee Company (BRC Inc.) announced its second-quarter earnings for 2025, showing a mixed financial outcome. The company experienced a net revenue increase of 7% year-over-year, reaching $94.8 million, which exceeded the revenue forecast of $92.76 million. Despite this positive revenue growth, the earnings per share (EPS) did not meet expectations, coming in at -$0.07 compared to the anticipated -$0.03. This discrepancy in EPS highlights a challenge in the company’s financial performance. These developments are part of the recent updates from BRC Inc.

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