DA Davidson starts Black Rock Coffee at Buy, sees earnings upside

As previously reported, DA Davidson initiated coverage of Black Rock Coffee (BRCB) with a Buy rating and $21 price target The company’s coffee beverages and proprietary energy drinks have garnered a growing fanbase from the West Coast to the Sunbelt, and with its long development runway ahead and good visibility on AUV – Average Unit Volume – improvement over the next few years, the firm expects likely earnings upside to drive multiple expansion as sales and profit growth potential becomes better appreciated, the analyst tells investors in a research note.