These are top 10 stocks traded on the Robinhood UK platform in July
On Wednesday, Wells Fargo (NYSE:WFC) initiated coverage on Dutch Bros Inc. (NYSE: NYSE:BROS), assigning an Overweight rating to the coffee chain’s shares with a price target set at $80. Currently trading at $69.89 with a market capitalization of $5.57 billion, the research firm highlighted Dutch Bros as one of the top growth stories in the consumer sector, citing its disruptive strategy and significant potential for market expansion.
The Wells Fargo analyst pointed out the company’s strong unit economics and the expectation of a 30% or higher EBITDA growth, building on its current EBITDA of $217 million. The company has demonstrated its growth potential with impressive revenue growth of 32.6% in the last twelve months. Additionally, the analyst noted a credible plan by Dutch Bros to increase average unit volumes (AUVs) by over 10% in 2025 and 2026, driven by various compounding factors. These include contributions from mobile ordering, loyalty programs, food offerings, and core marketing initiatives, which are expected to significantly boost sales.
Despite acknowledging the company’s rich EV/EBITDA valuation of 41.5x and challenging comparisons in the first quarter—attributed to factors such as the leap day, protein coffee, and boba launches—the analyst remains optimistic. According to InvestingPro data, the stock appears overvalued at current levels, though it has delivered impressive returns of 113.9% over the past six months. Estimates provided by Wells Fargo are 5% and 14% higher for 2025 and 2026, respectively, compared to consensus estimates on the Street. The firm believes that Dutch Bros has the potential to double its EBITDA in less than three years, a more aggressive forecast than the Street’s expectation of approximately four years.
The coverage initiation and the positive outlook for Dutch Bros come as the company continues to implement its growth initiatives, which Wells Fargo expects will lead to an upside in growth expectations as these efforts unfold and momentum builds. For deeper insights into Dutch Bros’ financial health, growth prospects, and 17 additional ProTips, access the comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, Dutch Bros Inc. has reported several significant developments. UBS has raised the company’s stock price target to $90, maintaining a Buy rating, following impressive fourth-quarter results that highlighted strong same-store sales and customer traffic. The company has provided guidance for 2025, projecting revenue between $1.555 and $1.575 billion and same-store sales growth of 2-4%. Stifel has also increased its price target for Dutch Bros to $74, citing the durability of the company’s sales layers and the potential introduction of a new food platform in 2026. Additionally, JPMorgan has raised its price target to $80, emphasizing the company’s growth trajectory and successful initiatives like Mobile Order and Pay.
Morgan Stanley (NYSE:MS) initiated coverage of Dutch Bros with an Overweight rating and a price target of $82, praising the company’s rapid growth and strong customer loyalty. The firm expects Dutch Bros to continue meeting its unit growth targets, driven by food offerings and mobile ordering. In corporate governance news, Dutch Bros has appointed Kory Marchisotto as an independent director on its Board of Directors, a move seen as strategic to bolster brand growth. Marchisotto’s experience in marketing and brand development is expected to align well with the company’s customer base. These developments reflect ongoing confidence in Dutch Bros’ growth potential and strategic initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.