Why Dutch Bros Coffee's Price Target Was Raised by BofA

Dutch Bros Inc’s BROS revenue growth is likely to outpace that of other “high-growth consumer companies,” as is its EBITDA growth, according to BofA Securities.

The Dutch Bros Analyst: Sara Senatore reiterated a Buy rating for Dutch Bros, while raising the price target from $55 to $80.

The Dutch Bros Thesis: The momentum of activity on Google Trends, Instagram and Twitter posts highlights the “long awareness runway” the brand enjoys, Senatore said in the note to clients.

The analyst mentioned that rising app utilization is important, as this translates to:

  • Higher ticket
  • Greater frequency
  • Richer customer data

“Because these effects have long-term implications for volumes, we are increasing the store level volumes we use to estimate earnings power for BROS,” she wrote.

“In today’s report from BofA’s Analytics team, the social and app data on Dutch Bros points to persistent — or even accelerating — brand momentum,” Senatore added.

BROS Price Action: Shares of Dutch Bros had declined by 3.46% to $67.78 at the time of publication Wednesday.

Photo: Courtesy Dutch Bros Coffee

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BROSDutch Bros Inc
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