Two National Guard members shot near White House
Investing.com - Mizuho maintained its Outperform rating on BellRing Brands (NYSE:BRBR) but lowered its price target to $40.00 from $45.00 on Monday. According to InvestingPro data, the stock is currently trading at $29.77, suggesting potential upside to Mizuho’s target despite the company being considered undervalued based on InvestingPro’s Fair Value model.
The research firm cited fiscal year 2026 as a transition year for the company, with EBITDA guidance coming in lighter than market expectations due to significant first-half cost pressures, though revenue guidance of 4-8% growth exceeded bearish forecasts. BellRing’s current EBITDA stands at $376 million, with the company maintaining a healthy EV/EBITDA ratio of 12.25.
BellRing’s long-term algorithm was reduced for sales to 7-9% growth from the previous 10-12%, which Mizuho noted was better than many anticipated and aligned with their high-single-digit growth thesis. The company has demonstrated strong revenue growth of 16.05% over the last twelve months, according to InvestingPro data.
Despite investor concerns about rising competition that contributed to BellRing shares falling 65% year-to-date through November 18 (compared to the Consumer Staples Select Sector SPDR Fund’s 1.9% decline), Mizuho highlighted surprisingly strong visibility into solid next-twelve-month distribution in non-Club outlets exceeding 20% year-over-year. InvestingPro data confirms this dramatic price decline, showing a 62.12% drop over the past year, though the stock has recently shown signs of recovery with a significant 16.2% return over the last week.
Mizuho reduced its fiscal year 2026 EBITDA estimates to $441 million from $504 million, basing the new $40 price target on approximately 14 times calendar year 2026 estimated EBITDA, while noting an improved near-term risk/reward profile. InvestingPro Tips reveal that 6 analysts have revised their earnings downwards for the upcoming period, though the company is expected to remain profitable this year. For deeper insights into BellRing’s financial health, valuation metrics, and comprehensive analysis, check out the Pro Research Report available exclusively on InvestingPro.
In other recent news, BellRing Brands has announced a new $600 million share repurchase authorization, set to extend over the next two years. This new buyback program replaces the previous $400 million plan, under which approximately $123 million had already been repurchased before it was canceled. In addition to the buyback news, BellRing’s earnings report revealed results that fell short of expectations, despite a top-line beat. UBS maintained a Neutral rating on the stock, citing a lowered growth outlook and earnings that missed forecasts. Analyst firm TD Cowen downgraded BellRing from Buy to Hold, expressing concerns over competitive pressures impacting the company’s fiscal year 2026 guidance. Meanwhile, Bernstein SocGen lowered its price target for BellRing to $38.00 from $46.00, while maintaining an Outperform rating, due to competitive pressures from new market entrants affecting sales trends. These developments highlight the challenges BellRing Brands faces in a competitive market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.