William Blair analyst Sharon Zackfia has reiterated their bullish stance on BROS stock, giving a Buy rating yesterday.
Sharon Zackfia’s rating is based on Dutch Bros Inc’s strategic plans and growth potential. The company has increased its target addressable market to 7,000 locations, surpassing previous estimates, and plans to open 1,000 new shops in the next five years. This expansion is supported by a strong first-quarter sales performance that exceeded market expectations, along with a commitment to achieving 20% annual revenue growth and 30% shop-level margins, translating to over 20% growth in adjusted EBITDA annually.
Additionally, Dutch Bros is enhancing customer engagement through initiatives like mobile ordering and an expanded food menu, which are expected to boost morning sales and customer frequency. The company’s focus on maintaining high service levels and a robust leadership pipeline further strengthens its competitive position. With a retention rate significantly better than industry norms, Dutch Bros is well-positioned to capitalize on its growth strategies, making it an attractive investment opportunity.
According to TipRanks, Zackfia is a 5-star analyst with an average return of 13.2% and a 52.83% success rate. Zackfia covers the Consumer Cyclical sector, focusing on stocks such as Carnival, Potbelly, and Sweetgreen.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $89.00 price target.