BellRing Brands initiated with a Buy at Citi

Citi analyst Thomas Palmer initiated coverage of BellRing Brands with a Buy rating and $67 price target. Driven by continued category growth and share gains, the firm expects BellRing to sustain double-digit sales growth for “at least the next couple of years,” the analyst tells investors. With the cost environment turning more in BellRing’s favor and volume growth likely to accelerate, the firm also sees potential for margin upside, adds the analyst, who does not think the current valuation is “too lofty to scare away potential acquirors.”