Stifel maintains Buy on BellRing stock, target steady at $81

On Tuesday, Stifel analysts reiterated their Buy rating on BellRing Brands (NYSE:BRBR) shares, maintaining a price target of $81.00. The firm highlighted BellRing’s impressive first-quarter financial results for fiscal year 2025, which included a 25% increase in EBITDA to $125.3 million. This figure surpassed Stifel’s own estimates by $17.8 million and the consensus estimate by $16.1 million. According to InvestingPro data, the company, now valued at $9.57 billion, has seen 4 analysts revise their earnings estimates upward for the upcoming period.

BellRing’s revenue saw a significant boost, growing by 23.8% thanks to a combination of 20.8% volume growth and a 3.0% benefit from price and product mix adjustments. The company’s gross margin was notably strong during the quarter, partly due to a one-time $5 million benefit. Premier Brands™, a key segment of BellRing, experienced a 12.6% surge in sales. This was driven by international market growth, which more than compensated for an 8% drop in domestic consumption. InvestingPro analysis shows the company maintains a healthy financial position with a current ratio of 2.91, indicating strong liquidity. Discover more financial health metrics and 13 additional ProTips with an InvestingPro subscription.

The stock has demonstrated remarkable momentum, posting a 57.54% return over the past six months. Following these robust results, BellRing has upgraded its full-year 2025 guidance. The company now anticipates revenue to fall between $2.26 billion and $2.34 billion, marking an increase of 13% to 17%, which is a 1 percentage point improvement at the midpoint. EBITDA projections have also been raised to a range of $470 million to $500 million, reflecting a 7% to 14% growth, with a 2 percentage point increase at the midpoint.

The Stifel analyst, Matthew Smith, expressed a positive outlook on the company’s performance, stating, "QUICK WORD: POSITIVE BellRing reported 1Q25 EBITDA of $125.3 million, representing 25% growth, which was $17.8 million ahead of our estimate and $16.1 million ahead of the consensus estimate." He also noted the strength in the Premier Brands™ metrics and the company’s ability to raise its FY25 guidance, reinforcing the rationale behind the firm’s continued support for a Buy rating and an $81 target price on the stock. For a comprehensive analysis of BRBR’s valuation and growth prospects, access the detailed Pro Research Report available exclusively on InvestingPro.

In other recent news, BellRing Brands has been the subject of several analyst reports. Truist Securities maintained a Hold rating on the company’s shares, setting a price target of $75.00. This follows the company’s F1Q25 results which exceeded both net sales and adjusted EBITDA expectations. Citi analysts have raised their price target on BellRing Brands to $90 from $83 while retaining a Buy rating. Stephens also increased their price target for the company’s shares to $75.00, up from the previous $61.00, while maintaining an Equal Weight rating. Mizuho (NYSE:MFG) Securities adjusted its outlook on BellRing Brands, raising the price target to $80.00 from the previous $72.00 and reaffirming an Outperform rating on the stock.

In other developments, BellRing Brands announced significant changes to its corporate governance structure following approval from its shareholders. The company reported the successful amendment of its Certificate of Incorporation and Bylaws, resulting in the declassification of its Board of Directors. This move simplifies the company’s governance by allowing for the annual election of all directors rather than a staggered, multi-year term system. These are some of the recent developments concerning BellRing Brands.

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