Stifel maintains BellRing Brands stock Buy rating, $83 target

On Tuesday, Stifel analysts upheld their Buy rating and $83.00 price target for BellRing Brands (NYSE:BRBR) following the company’s latest earnings report. The company, currently valued at $8.6 billion, is trading near its InvestingPro Fair Value. BellRing Brands, known for its Premier Brands™, disclosed its second-quarter 2025 earnings with an EBITDA of $118.6 million. This figure marks a 14.5% year-over-year increase but fell short of Stifel’s forecast by $1.7 million. However, it did surpass the consensus estimate by $0.9 million.

The company achieved an 18.9% rise in revenue, fueled by a 15.3% increase in volume and a 3.6% gain from price and product mix adjustments. This performance aligns with the company’s impressive 21% revenue growth over the last twelve months, according to InvestingPro data. Premier Brands™ stood out with a robust 22% surge in sales, which included a 21.7% rise for its Premier RTD shakes. The revenue growth outperformed Stifel’s predictions by 2 percentage points. Despite the revenue increase, higher marketing expenditures resulted in an EBITDA that did not meet the firm’s expectations.

BellRing Brands confirmed its full-year 2025 guidance, projecting revenues to reach between $2.26 billion and $2.34 billion, which would represent a 13% to 17% growth. The company also anticipates its EBITDA for the fiscal year to be in the range of $470 million to $500 million, indicating a 7% to 14% increase. InvestingPro data shows the company maintains strong financial health with a current ratio of 3.35 and an impressive return on assets of 34.9%.

Stifel’s analysts reiterated their positive stance on BellRing Brands, citing the company’s robust sales growth, particularly in its Premier Brands™ product line. The firm’s continued endorsement of the stock with a Buy rating and an $83 price target reflects confidence in BellRing’s market position and growth trajectory. The broader analyst consensus is strongly bullish, with price targets ranging from $73 to $94, suggesting potential upside from current levels. For deeper insights into BRBR’s valuation and growth metrics, investors can access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, BellRing Brands has reported several significant developments. The company has announced a new $300 million share repurchase program, set to begin in March 2025, which will replace the nearly exhausted previous authorization. This move follows a series of repurchases totaling $151.7 million. Additionally, Mizuho (NYSE:MFG) Securities has raised its price target for BellRing Brands to $85, maintaining an Outperform rating, citing strong first-quarter earnings and robust EBITDA performance. Mizuho anticipates continued growth due to favorable market conditions and increased demand for the company’s products.

Meanwhile, Morgan Stanley (NYSE:MS) has initiated coverage of BellRing Brands with an Overweight rating and an $84 price target, expressing optimism about the company’s growth potential in the convenient nutrition sector. UBS, however, has taken a more cautious approach, initiating coverage with a Neutral rating and an $81 price target. UBS acknowledges the company’s impressive growth prospects but suggests that the current stock price may already reflect these expectations. These recent developments highlight BellRing Brands’ strategic market position and the varied analyst perspectives on its future performance.

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