Robert Moskow, an analyst from TD Cowen, reiterated the Buy rating on BellRing Brands (BRBR – Research Report). The associated price target is $78.00.
Robert Moskow has given his Buy rating due to a combination of factors that suggest BellRing Brands is well-positioned for future growth. Despite a recent decline in stock price attributed to concerns about inventory reductions at key Club customers, Moskow believes these issues are temporary and not indicative of a demand problem. The demand for BellRing’s protein shakes and powders remains robust, even amid declining consumer confidence in the U.S., and the inventory reduction is seen as a short-term issue rather than a long-term trend.
Management’s decision to maintain sales guidance for FY25, despite a mid-single-digit impact on third-quarter sales from inventory de-loading, signals confidence in the company’s enhanced service levels. Moskow highlights that BellRing’s Premier branded shakes are expected to see significant growth, supported by strategic marketing efforts and product redesigns. Additionally, increased promotional activities in the fourth quarter are anticipated to drive sales towards the higher end of the company’s guidance. The lowered price target of $78 reflects a valuation that Moskow considers appropriate for a company with strong growth prospects and potential for strategic acquisition.
In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $90.00 price target.
Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BRBR in relation to earlier this year.