DA Davidson holds BellRing Brands stock at neutral, $90 target

Published 04/02/2025, 17:28
DA Davidson holds BellRing Brands stock at neutral, $90 target

On Tuesday, DA Davidson reiterated its Neutral rating on BellRing Brands (NYSE:BRBR) stock, maintaining a price target of $90.00. The firm’s analyst, Brian Holland, commented on the company’s performance, noting that BellRing Brands started the fiscal year 2025 on a strong note, continuing the momentum it had in fiscal year 2024. This momentum is reflected in the company’s impressive 19.76% revenue growth over the last twelve months. He highlighted the company’s success in the ready-to-drink shakes market, which is becoming a popular option for efficient protein delivery.

Holland pointed out that while BellRing’s adjusted EBITDA surpassed both his expectations and the consensus by more than $15 million, the guidance was only raised by $10 million. The company’s current EBITDA stands at $424.2 million, with InvestingPro data showing 4 analysts revising their earnings estimates upward for the upcoming period. He suggested that this discrepancy might be due to the timing of marketing expenditures, indicating that the fiscal year 2025 estimates might only see modest revisions upwards, if any.

Despite acknowledging the scarcity value within the increasingly divided Food group, Holland expressed caution regarding the stock’s potential for further gains. He mentioned that with a valuation at 22 times next twelve months (NTM) EBITDA and considering peak margins, the stock’s performance may face challenges moving forward if it relies solely on top-line growth to drive it. According to InvestingPro, the stock currently trades at an EV/EBITDA multiple of 24.21x, with analyst price targets ranging from $75 to $92. For deeper insights into BRBR’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, BellRing Brands has been the focus of several analyst updates. Stifel maintained its Buy rating on BellRing’s stock, holding steady with a price target of $81. This follows BellRing’s impressive first-quarter financial results for fiscal year 2025, which included a 25% increase in EBITDA to $125.3 million and a 23.8% growth in revenue. Truist Securities also maintained a Hold rating on BellRing Brands shares, setting a price target of $75.00 after the company reported strong F1Q25 results.

Citi analysts increased their price target on BellRing Brands to $90 from $83, while reiterating a Buy rating. Meanwhile, Stephens, a financial services firm, raised the price target for BellRing Brands shares to $75.00, up from the previous $61.00, while retaining an Equal Weight rating.

In addition to these analyst updates, BellRing Brands announced significant changes to its corporate governance structure, following approval from its shareholders. These changes included the declassification of its Board of Directors, allowing for the annual election of all directors rather than a staggered, multi-year term system. These are among the recent developments for BellRing Brands.

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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