Dutch Bros Shares Shoot Higher As Analysts See Upto 25% Upside

JPMorgan analyst John Ivankoe initiated coverage of Dutch Bros Inc BROS with an Overweight rating and $47 price target, suggesting a 2% downside.
The analyst has a positive view of the company's growth prospects and management's ability to execute.
Ivankoe added that much of the near-term upside is already reflected in the share price, so investors should use price dips to add to positions.
Cowen analyst Andrew Charles initiated coverage with an Outperform rating and $50 price target, suggesting a 4% upside.
Stifel analyst Chris O'Cull initiated coverage of Dutch Bros with a Buy rating and $52 price target. The company's "impressive" unit-level economics, expansion potential, and pace of development "check all the boxes for a compelling restaurant growth investment," says O'Cull, who believes Dutch Bros' projections for at least 4,000 units in the U.S. "may prove conservative."
Jefferies analyst Andy Barish initiated coverage with a Buy rating and $60 price target, implying 25% upside, calling it "one of the most compelling high-growth companies" in the restaurant industry.
BofA analyst Sara Senatore initiated coverage with a Buy rating and $55 price target (implying 14% upside), citing beverage-only product mix that includes its Blue Rebel energy drink translating into high gross margins and maximizing labor efficiency.
Barclays analyst Jeffrey Bernstein initiated coverage of Dutch Bros with an Equal Weight rating and $40 price target, suggesting a 16% downside. The analyst states while valuation keeps him cautious on the shares, the company's fundamentals "are intriguing."
Baird analyst David Tarantino initiated coverage with an Outperform rating and $56 price target (implying 16% upside) and commented the company is a "differentiated brand" that is well positioned to capture "substantial amounts" of market share over time within the sizable U.S. beverage category.
Price Action: BROS shares are trading higher by 13.7% at $48.5 on the last check Monday.

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