Piper Sandler cuts Dutch Bros price target to $63 from $70

Published 08/05/2025, 13:16
Piper Sandler cuts Dutch Bros price target to $63 from $70

On Thursday, Piper Sandler analyst Brian Mullan adjusted the price target for Dutch Bros Inc. (NYSE:BROS) shares, reducing it to $63 from the previous $70, while keeping a Neutral rating on the stock. The revision followed the company’s first quarter earnings call for the year 2025. According to InvestingPro data, analyst targets for Dutch Bros range from $63 to $85, with the stock currently trading at $59.22. The company, now valued at $5.57 billion, has delivered an impressive 86.4% return over the past year.

Dutch Bros had previously announced preliminary results for the first quarter during its Investor Day on March 27. The primary focus of the earnings call was on the company’s future outlook and management’s commentary. Management provided guidance for the second quarter of 2025, expecting same-store sales (SSS) growth to be between 3.0% and 4.0%. This projection fell short of the consensus estimates which were at 4.9% and was also considered slightly below the expectations of buy-side investors. InvestingPro analysis shows the company maintains strong fundamentals with a 32.64% revenue growth in the last twelve months and an overall Financial Health score of "GOOD," though it currently trades at a high P/E ratio of 241.33.

Despite the lower-than-anticipated SSS guidance for the second quarter, Dutch Bros management maintained its full-year guidance. However, they indicated that the performance metrics such as total revenue, SSS, and adjusted EBITDA are tracking towards the upper end of the previously provided ranges. This suggests that while the second quarter may not meet some expectations, the overall annual performance could still be strong.

The stock’s price target adjustment by Piper Sandler reflects the latest financial results and guidance provided by Dutch Bros. The company’s financial performance and management’s expectations are crucial information for investors, as they can influence investment decisions and stock performance in the market.

In other recent news, Dutch Bros Inc. reported impressive financial results for the first quarter of 2025, exceeding Wall Street expectations. The company reported an earnings per share of $0.14, surpassing the forecasted $0.11, and achieved revenue of $355.2 million, beating the anticipated $343.57 million. This represents a 29% year-over-year revenue increase, showcasing strong business momentum. Dutch Bros also expanded its presence by opening 30 new shops, bringing its total to 1,012 locations. The company’s adjusted EBITDA rose by 20% year-over-year to $63 million, indicating robust financial health. Despite these positive developments, the stock experienced a minor dip in after-hours trading. Looking forward, Dutch Bros aims to open 160 new shops in 2025 and is exploring the consumer packaged goods channel to enhance brand awareness. The company continues to demonstrate resilience and strategic growth in a dynamic market environment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.