JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Thursday, Mizuho (NYSE:MFG) Securities reinforced its confidence in BellRing Brands (NYSE:BRBR) by raising the price target on the company’s stock to $85.00, up from the previous target of $80.00, while sustaining an Outperform rating. According to InvestingPro data, analyst targets for BRBR now range from $75 to $94, with 11 analysts recently revising their earnings estimates upward for the upcoming period.
The adjustment follows BellRing Brands’ first-quarter earnings, which showcased a robust EBITDA performance, surpassing expectations. The company has demonstrated impressive financial strength, with revenue growing 21% over the last twelve months and maintaining a healthy current ratio of 3.35. Mizuho’s analyst highlighted that the positive results were partly due to favorable timing regarding input costs and marketing expenditures. However, the underlying metrics of the company showed signs of strength.
The company’s Premier shakes have seen an increase in buy rate growth throughout the calendar year 2024, along with a rise in household penetration to new heights. Looking ahead, the calendar year 2025 is anticipated to be the first full year of widespread demand-generation activities in the post-COVID era, which is expected to bolster sales further.
In addition to the success of Premier shakes, BellRing Brands’ Dymatize sales growth has been supported by a stronger presence in international markets. Analysts at Mizuho predict that whey protein prices will reach a cyclical peak in the first half of the calendar year 2025, which should limit any potential downside risks to the company’s gross margin going into the fiscal year 2026.
Despite the expectations of limited opportunities for valuation multiple expansion in the future, given the current 22.5 times the firm’s estimated calendar year 2025 EBITDA, Mizuho maintains a high conviction in BellRing Brands’ potential for multi-year double-digit compounding growth in both revenue and EBITDA. The company has demonstrated this potential with an impressive 18% revenue CAGR over the past five years. While InvestingPro analysis suggests the stock is currently trading above its Fair Value, the firm advises investors to consider purchasing shares if any market weakness presents itself. For deeper insights into BRBR’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro along with 12 additional ProTips and extensive financial metrics.
In other recent news, BellRing Brands has been the subject of several analyst notes. Stifel analysts have raised their price target for BellRing Brands to $83, citing robust performance in the first quarter of FY25. The company’s revenue and EBITDA surpassed expectations, leading BellRing to raise its full-year forecasts for both top and bottom lines.
Meanwhile, Jefferies retained a Buy rating on BellRing Brands but reduced the price target to $86, pointing to strong demand drivers that are expected to boost the company’s performance. On the other hand, DA Davidson maintained a Neutral rating on BellRing Brands with a price target of $90, noting a strong start to the fiscal year 2025.
In contrast, Truist Securities maintained a Hold rating on BellRing Brands with a price target of $75, noting another strong quarter for the company. These recent developments highlight the varied perspectives from different firms regarding BellRing Brands’ performance and future prospects.
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