BellRing Brands, the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Megan Alexander from Morgan Stanley maintained a Buy rating on the stock and has a $32.00 price target.
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Megan Alexander’s rating is based on the expectation that BellRing Brands can realistically deliver mid-single-digit revenue growth once current competitive distortions and promotional intensity normalize, even if management guidance remains conservative. She believes the recent sell-off overstates the risk profile, especially since the company’s mass retail partnership is ramping as planned and offers tangible upside once activation fully kicks in.
Megan rests her Buy on the view that the long-term risk/reward remains attractive: the balance sheet supports strategic flexibility, execution at the mass retailer is improving according to both internal commentary and external data, and management has already incorporated club-channel softness into its outlook. Although the CEO transition injects uncertainty and near-term visibility is limited, she sees optionality and valuation support that outweigh those concerns, making the pullback an opportunity for patient investors.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $30.00 price target.
Based on the recent corporate insider activity of 54 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.