BellRing Brands downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded BellRing Brands (BRBR) to Equal Weight from Overweight with a price target of $13, down from $24, following the Q2 report. The company reported a “sizable” earnings miss and 25% cut to its fiscal year EBITDA outlook amid a “perfect storm” of heightened consumer price sensitivity, sustained competitive promotional intensity, and rising cost inflation, the analyst tells investors in a research note. Morgan Stanley says its Overweight thesis was wrong, as BellRing’s updated outlook implies a “muted” 1% sales growth outlook for the fiscal year and coming at a much higher cost.