Stifel trims BellRing Brands target, sees opportunity in pullback

Stifel lowered the firm’s price target on BellRing Brands (BRBR) to $81 from $83 and keeps a Buy rating on the shares. The company reported a sales beat in the quarter, reiterated its FY25 guidance and outlined a bullish view of Premier consumption, but the inventory destocking and related lower expectations for the third quarter, despite the full-year reiteration, was “enough to result in a significant underperformance in the shares” as the company “fell victim to the hardship of maintaining a premium multiple, the related high expectations, and thin margin of error,” the analyst tells investors. However, the firm views this pullback in valuation as “an opportunity for investors in front of robust consumption growth that we believe could yield a strong return for investors,” the analyst added.