BellRing Brands price target lowered to $80 from $90 at Citi

Citi lowered the firm’s price target on BellRing Brands (BRBR) to $80 from $90 and keeps a Buy rating on the shares. The stock fell 19% yesterday post earnings after a fiscal Q2 sales beat but only reiterated fiscal 2025 guidance and the disclosing of Q3 sales headwinds from inventory cuts at a key club customer, the analyst tells investors in a research note. The firm says that heading into the earnings report, expectations were lofty. While the “rapid unwind” of investor sentiment and the destocking surprise could present a lingering overhang on the share price, a selloff this magnitude is not warranted by fundamentals, contends Citi. The firm left a a follow-up call with management “incrementally more comfortable” that the destock does not signal demand erosion for Premier shakes nor looming shelf space cuts.