Dutch Bros price target raised to $39 from $37 at Wedbush

Wedbush raised the firm’s price target on Dutch Bros to $39 from $37 and keeps an Outperform rating on the shares. The firm notes the company reported Q1 EPS above expectations on same-store sales growth and UL margin upside. With multiple company-specific drivers of upside in place, Wedbush views current 2024 same-store sales growth and EBITDA expectations as conservative. The firm also views Dutch Bros’ current valuation as an overly pessimistic assessment of its longer-term annual growth algorithm. Dutch Bros remains on the Wedbush Best Ideas List.