Dutch Bros stock holds Buy rating at UBS ahead of Q2 earnings

Published 04/08/2025, 15:32
Dutch Bros stock holds Buy rating at UBS ahead of Q2 earnings

Investing.com - UBS has reiterated a Buy rating and $80.00 price target on Dutch Bros Inc. (NYSE:BROS) ahead of the company’s second-quarter earnings report scheduled for August 6. According to InvestingPro data, analyst targets range from $63 to $86, with the stock currently trading at relatively high valuation multiples.

Dutch Bros shares have declined more than 20% since early June, primarily due to concerns about softer sales trends in June and July, according to UBS analyst Dennis Geiger. Despite the recent pullback, InvestingPro data shows the stock has delivered a robust 51.5% return over the past year, though its price movements remain notably volatile.

The market expects second-quarter same-store sales growth between 4% and 5%, with consensus estimates at 4.1%, while investors remain focused on whether the company will maintain or raise its 2025 guidance. The company has demonstrated strong growth momentum, with revenue increasing by 30.4% in the last twelve months. Get deeper insights into Dutch Bros’ growth prospects with 12+ additional exclusive tips on InvestingPro.

UBS views Dutch Bros as well-positioned for continued sales momentum and market share gains, citing growth drivers including marketing, mobile ordering, menu innovation, throughput improvements, and loyalty programs.

The coffee chain remains on track to meet its second-quarter development target of approximately 30 new units and its 2025 goal of more than 160 units, supporting its longer-term mid-teens percentage development targets.

In other recent news, Dutch Bros Inc. has attracted attention from multiple analyst firms with varied ratings and price targets. Melius Research initiated coverage with a Buy rating and a $95 price target, highlighting the company’s customizable drinks and drive-thru convenience as key strengths. Goldman Sachs also began coverage, albeit with a neutral rating and a $75 price target, suggesting a modest upside potential. TD Cowen maintained its Buy rating with a $78 price target, citing the potential for sustained growth in same-store sales, driven by mobile ordering and food offerings expected in the coming years.

RBC Capital Markets provided an optimistic outlook by assigning an Outperform rating and setting an $83 price target, noting Dutch Bros’ strong appeal to Generation Z consumers. Stifel adjusted its price target to $82 from $85 but maintained a Buy rating following Dutch Bros’ first-quarter earnings, which exceeded expectations. Stifel highlighted the company’s effective communication and unique sales drivers like mobile ordering and early paid advertising. These recent developments indicate a strong analyst interest in Dutch Bros, with varying perspectives on its growth potential and market positioning.

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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