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Investing.com - JPMorgan has assumed coverage of BellRing Brands (NYSE:BRBR), a company with a market capitalization of $5.1 billion, with an Overweight rating and a price target of $52.00, down from the previous target of $80.00. According to InvestingPro data, the stock has declined over 45% in the past six months, though analysis suggests the shares may be undervalued at current levels.
The firm cited the strong performance of BellRing’s Premier Protein brand in the protein shake category, which remains one of the fastest-growing segments in the food industry. This success is reflected in the company’s impressive 16.3% revenue growth over the last twelve months, with InvestingPro data showing healthy profit margins of 35.4%.
JPMorgan sees significant potential for distribution expansion, particularly in grocery stores where the category is "poorly merchandised and underpenetrated" and in convenience stores where the Premier brand has "minimal presence."
The bank believes this category growth and brand expansion will enable BellRing to maintain sales growth close to its 10-12% target, despite increasing competitive pressures at key customers like Costco (NASDAQ:COST) and Walmart (NYSE:WMT).
JPMorgan acknowledged competitive concerns may cause BellRing’s sales growth to slow compared to recent performance, with valuation likely to "remain depressed versus historic norms for the foreseeable future."
In other recent news, BellRing Brands reported its financial results for the third quarter of 2025, exceeding analyst expectations. The company announced earnings per share of $0.55, surpassing the forecasted $0.50, and revenue of $547.5 million, which also outperformed the expected $531.12 million. Despite these positive earnings and revenue results, the stock experienced a notable decline. Mizuho (NYSE:MFG) maintained its Outperform rating on BellRing Brands but significantly lowered its price target from $75.00 to $45.00, citing growth concerns. Similarly, DA Davidson reduced its price target from $85.00 to $58.00, while still keeping a Buy rating on the stock. William Blair reiterated an Outperform rating, suggesting the recent pullback in share price presents an attractive opportunity for investors. These developments follow a challenging period for BellRing Brands, which has seen significant market capitalization loss since earlier this year.
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