Citi Initiates Buy Rating on Dutch Bros with $82 Price Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: seekingalpha
- Strong Brand Fundamentals: Citi analyst Jon Tower highlights that Dutch Bros (BROS) has proven its portability across the U.S., with expectations for comparable sales growth driven by footprint expansion and a rapidly growing marketing budget over the next 12-24 months.
- Market Share Potential: Despite a muted outlook for the coffee-away-from-home market, analysts believe the on-trend BROS concept is well-positioned to capture market share, with potential tailwinds outweighing headwinds.
- Price Target Set: Citi has set a price target of $82 for Dutch Bros, reflecting confidence in its future growth, even as shares fell 1.1% to $60.23 in early trading, remaining within the 52-week range.
- Short Interest Pressure: With short interest at 9.7% of the total float, there are concerns about stock price volatility; however, analysts maintain that the long-term growth potential remains robust.
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Analyst Views on BROS
Wall Street analysts forecast BROS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BROS is 76.64 USD with a low forecast of 63.00 USD and a high forecast of 85.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
12 Buy
1 Hold
0 Sell
Strong Buy
Current: 57.440
Low
63.00
Averages
76.64
High
85.00
Current: 57.440
Low
63.00
Averages
76.64
High
85.00
About BROS
Dutch Bros Inc. is an operator and franchiser of drive-thru shops, which is focused on serving hand-crafted beverages. The Company sells a range of customizable hot, iced and blended beverages. Coffee-based beverages include handcraft espresso shots for both hot and cold custom classic and signature coffee beverages. It also sells proprietary coffee-based Freeze blended beverages and cold brew. Its Private Reserve coffee is a 100% Arabica three-bean blend, roasted by the Company in Grants Pass, Oregon or Melissa, Texas facilities. The Company has two segments: Company-operated shops, and Franchising and other. The Company-operated shops segment includes retail coffee shop sales to end consumers. The Franchising and other segment includes bean and product sales to franchise partners and includes the initial franchise fees, royalties, and marketing fees. It has approximately 1,101 shops, of which over 779 are operated by the Company and 322 are franchised, across 26 states.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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