Analyst Megan Alexander from Morgan Stanley maintained a Buy rating on BellRing Brands and decreased the price target to $41.00 from $43.00.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Megan Alexander’s rating is based on several factors that suggest a positive outlook for BellRing Brands. Despite recent volatility, with shares initially dropping before recovering, the company appears to have set a reasonable performance target for the upcoming quarter. This expectation is bolstered by a new partnership with a major retailer, which is anticipated to drive an acceleration in sales trends. The management’s strategy to offset share losses in the club channel with gains in other areas also contributes to a more favorable risk profile for the stock.
Megan Alexander remains confident in the brand’s long-term growth prospects, supported by strong demand in the category and opportunities for market share expansion in less saturated channels. While the stock’s sentiment may remain cautious until clearer results are seen in the second quarter and beyond, the underlying health of the brand and its potential for growth provide a solid foundation for the Buy rating. Additionally, competitive pressures are believed to be adequately reflected in the current valuation, further supporting the positive recommendation.