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Investing.com - UBS has reiterated its Buy rating and $85.00 price target on Dutch Bros Inc. (NYSE:BROS) ahead of the company’s third-quarter earnings report scheduled for November 5. According to InvestingPro data, analyst targets for the stock range from $70 to $95, with the company currently valued at $10.55 billion.
The coffee chain’s shares have declined approximately 20% since the end of August, reflecting investor concerns about industry pressures, slowing trends at the end of the third quarter and beginning of the fourth quarter, and increased beverage competition from larger coffee brands, quick-service restaurants, and smaller brands with similar drive-thru business models. Despite recent volatility, InvestingPro data shows the stock has delivered an impressive 53% return over the past year.
Despite these concerns, UBS believes Dutch Bros shares remain positioned for further upside, citing the company’s industry-leading store growth and ongoing sales and traffic momentum that is likely sustainable through the second half of 2025 and into 2026. InvestingPro analysis reveals strong revenue growth of nearly 30% in the last twelve months, with analysts forecasting 25% growth this year.
Current investor expectations for Dutch Bros’ third-quarter same-store sales growth is approximately 4%, according to UBS, which is close to the consensus estimate of 4.1%.
UBS anticipates Dutch Bros will likely reiterate its 2025 guidance, including revenue of $1.59-1.60 billion on same-store sales growth of approximately 4.5%, and adjusted EBITDA of $285-290 million.
In other recent news, Dutch Bros Inc. is receiving significant attention from analysts and investors as it approaches its third-quarter earnings report. RBC Capital has reiterated its Outperform rating with a price target of $85, highlighting the coffee chain’s potential resilience against macroeconomic challenges. Meanwhile, UBS has raised its price target for Dutch Bros to $85, citing expectations of continued market share gains in the high-growth coffee sector. Stifel has also maintained its Buy rating with an $82 price target, noting the expansion of Dutch Bros’ food test to new locations in Kentucky, Alabama, and Tennessee. In addition to these financial analyses, Dutch Bros has announced a limited-edition collaboration with streetwear brand Lonely Ghost, featuring exclusive merchandise and a specialty drink. This partnership will begin rolling out on October 1, offering customers a limited-edition sticker with any drink purchase while supplies last. These developments reflect a positive outlook from analysts and strategic initiatives by Dutch Bros to enhance its market presence.
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