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Black Rifle Coffee Company (BRCC) stock has hit a 52-week low, dropping to $1.92, representing a 73% decline from its 52-week high of $7.14. According to InvestingPro analysis, the stock appears undervalued at current levels, with analysts setting price targets between $2.50 and $4.00. This new low comes as a stark contrast to its performance over the past year, with the stock recording a total return of -55.11% over the past 12 months. Investors are closely monitoring BRCC’s movements as it navigates through these challenging market conditions, which have substantially impacted its valuation over the year. The company, known for its veteran-supportive branding, maintains a moderate debt level and liquid assets exceeding short-term obligations, according to InvestingPro’s financial health assessment (rated as FAIR). Discover 8 more exclusive ProTips and comprehensive analysis in the Pro Research Report.
In other recent news, BRC Inc. reported its fourth-quarter 2024 earnings, missing both earnings per share (EPS) and revenue forecasts. The company posted an EPS of -$0.03, below the expected $0.002, and revenue of $105.9 million, slightly under the anticipated $106.2 million. Despite these misses, BRC Inc. has shown significant improvements in gross margin, which increased by 9.5 percentage points to 41.2%. Additionally, the company launched a new energy drink line in December 2024, contributing to its strategic initiatives.
DA Davidson recently adjusted its price target for BRC Inc. to $3.00 from $5.00, maintaining a Buy rating, while Telsey Advisory Group reduced its target to $4.00 but continues to rate the stock as Outperform. Analysts from both firms have noted the company’s efforts in expanding its product lineup, including new flavors and energy drinks, which are now available in 7,000 retail locations. BRC Inc. is also focusing on expanding distribution and enhancing its retail partnerships, particularly with Walmart (NYSE:WMT).
The company’s strategic moves have led to an increase in wholesale revenue, now comprising 63% of total sales, up from 57% the previous year. BRC Inc. anticipates further growth as it plans to introduce its products to new retailers and expand its market presence. Despite challenges such as rising coffee costs and increased marketing expenses, analysts express confidence in BRC Inc.’s potential for continued growth in the competitive beverage market.
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