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BellRing Brands upgraded to Buy from Neutral at DA Davidson

DA Davidson upgraded BellRing Brands (BRBR) to Buy from Neutral with an $85 price target and named BellRing as its best idea in Food. Shares have sold off 21% since the Q2 results on May 6, and the firm doesn’t think decreased inventory and increased promotion foreshadow a bigger headwind, the analyst tells investors in a research note. Secular tailwinds BellRing’s levers point to sustained above algorithm growth into the foreseeable future, the firm says, adding that on the weakness, BellRing screens as a potential takeover target.

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