Dutch Bros Inc (BROS – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Andy Barish from Jefferies maintained a Buy rating on the stock and has a $82.00 price target.
Andy Barish has given his Buy rating due to a combination of factors that highlight Dutch Bros Inc’s potential for growth and resilience. The company is expected to benefit significantly from its Mobile Order & Pay system and food menu expansion, which are projected to contribute positively to same-store sales in the coming years. These initiatives are anticipated to drive incremental sales, particularly during morning hours, enhancing overall revenue.
Furthermore, Dutch Bros Inc’s sensitivity to coffee price fluctuations appears limited, suggesting stable margins moving forward. The company’s long-term growth prospects are bolstered by its potential to expand its total addressable market and achieve positive free cash flow by 2025, supporting self-funded growth. The unique brand and effective management team add to the confidence in the company’s future performance, making it an attractive investment opportunity with a price target of $82.
Barish covers the Consumer Cyclical sector, focusing on stocks such as Starbucks, Dutch Bros Inc, and McDonald’s. According to TipRanks, Barish has an average return of 9.2% and a 55.32% success rate on recommended stocks.
In another report released today, Morgan Stanley also initiated coverage with a Buy rating on the stock with a $82.00 price target.