Dutch Bros price target lowered to $32 from $36 at Stifel

Stifel analyst Chris O’Cull lowered the firm’s price target on Dutch Bros to $32 from $36 and keeps a Hold rating on the shares after having updated the firm’s estimates following the company’s recent common stock offering. The firm’s view of Dutch Bros is “more constructive” following the capital injection, as it reduces the company’s financial leverage and makes it less likely that unit growth will slow. However, enthusiasm toward improvements in store-level labor efficiency is “tempered by the likelihood that comp sales and new unit performance will remain challenged by aggressive market backfilling,” the analyst tells investors.