Analyst Andy Barish of Jefferies reiterated a Buy rating on Dutch Bros Inc (BROS – Research Report), with a price target of $70.00.
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Andy Barish has given his Buy rating due to a combination of factors including Dutch Bros Inc’s strong performance in the first quarter, where the company exceeded expectations in same-store sales and EBITDA. The management’s confidence in maintaining momentum into April, coupled with strategic initiatives such as digital engagement, rewards programs, and menu innovation, supports a positive outlook.
Furthermore, the company’s ability to manage costs effectively, particularly with lower cost of goods sold, and its strategic positioning against macroeconomic uncertainties, such as locking in coffee prices, bolster the Buy rating. The planned expansion with new store openings and the potential for further growth in newer markets also contribute to the optimistic forecast, with a price target set at $70, reflecting a premium valuation compared to high-growth consumer peers.
In another report released today, Stifel Nicolaus also reiterated a Buy rating on the stock with a $82.00 price target.