BellRing Brands upgraded to Overweight at Stephens following pullback

As previously reported, Stephens upgraded BellRing Brands (BRBR) to Overweight from Equal Weight with a price target of $50, down from $68, after the company posted Q3 sales and EBITDA ahead of expectations. While noting that the stock saw a significant selloff driven by fears of increasing competitive threats weighing on top-line trends, the firm points out that Premier Protein continues to post “record brand metrics” and sees the category’s structural tailwinds and BellRing’s favorable position within it as “still intact.” While increased competition in ready-to-drink is “creating noise,” the firm sees the pullback in shares creating “a very favorable risk/reward skew.”