Bank of America just raised its EUR/USD forecast
Investing.com - Mizuho (NYSE:MFG) maintained its Outperform rating on BellRing Brands (NYSE:BRBR) but significantly lowered its price target to $45.00 from $75.00 on Monday. According to InvestingPro data, the company maintains strong profitability with a 35.4% gross margin and healthy return on assets of 25.4%.
The stock has fallen 28% since the company’s fiscal third-quarter earnings report on August 4, substantially underperforming the Consumer Staples Select Sector SPDR Fund’s 2% gain during the same period. InvestingPro analysis indicates the stock is currently trading below its Fair Value, with multiple ProTips suggesting oversold conditions.
BellRing’s enterprise value to next-twelve-months adjusted EBITDA ratio has dropped to 11.7x, marking a 30-month low and falling below its post-spin average of 15x since March 2022, as investors question the company’s growth trajectory.
Mizuho reduced its EBITDA estimates for fiscal year 2025 to $488 million from $498 million and for fiscal year 2026 to $504 million from $546 million, noting that BellRing’s revenue is unlikely to maintain its fiscal 2021-2025 compound annual growth rate of 17%.
The firm expects BellRing’s new algorithm to show high-single-digit percentage growth versus the current 10-12% range, which Mizuho still considers "a very respectable rate inconsistent with current valuation."
In other recent news, BellRing Brands reported its financial results for the third quarter of 2025, exceeding analyst expectations. The company achieved earnings per share of $0.55, surpassing the forecasted $0.50, and reported revenue of $547.5 million, which was above the anticipated $531.12 million. Despite these positive earnings results, the company’s stock experienced a notable decline. In analyst updates, DA Davidson lowered its price target for BellRing Brands to $58 from $85, while maintaining a Buy rating. This adjustment follows a challenging period for the company, which has seen a significant reduction in market capitalization since its second-quarter results. Meanwhile, William Blair reiterated an Outperform rating on BellRing Brands, expressing a positive outlook despite recent share price volatility. The firm described the drop in BellRing’s stock as "draconian" and suggested it presents an attractive opportunity for investors. These developments highlight the mixed sentiment surrounding BellRing Brands amid its recent financial performance and market reactions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.