TD Cowen analyst Andrew Charles maintained a Buy rating on Dutch Bros Inc (BROS – Research Report) today and set a price target of $89.00.
Andrew Charles has given his Buy rating due to a combination of factors that reflect a strong growth trajectory for Dutch Bros Inc. He acknowledges the company’s potential for expansion, particularly highlighted during the recent Investor Day, where updates on the total addressable market and new store productivity were positively received. Charles is optimistic about the company’s ability to maintain a positive sales momentum.
Furthermore, he attributes the projected same-store sales growth in 2024 to several strategic initiatives. These include innovative beverage offerings, effective paid advertising, and the expansion of the Dutch Rewards loyalty program. Additionally, the full implementation of mobile ordering by the end of the third quarter in 2024 is expected to contribute significantly to sales growth. Looking further ahead, the focus on mobile orders and food offerings in subsequent years, along with an anticipated increase in caffeine consumption among an aging population, positions Dutch Bros favorably in the market.
In another report released on March 3, Stifel Nicolaus also maintained a Buy rating on the stock with a $85.00 price target.