TLDR
- Oppenheimer cut its price target on Dutch Bros to $66 from $82 but kept an “outperform” rating.
- BROS shares traded around $39, near their 52-week low of $37.40 and well off the 52-week high of $74.02.
- Analyst Brian Bittner says the stock’s valuation looks too cheap at under 14x EBITDA for a company still growing profit by over 20%.
- Q2 earnings beat expectations, with $0.33 EPS versus $0.29 expected and revenue up 33% year over year.
- Wall Street consensus remains a “Moderate Buy” with an average price target of $72.38.
Dutch Bros stock has had a rough year, but Oppenheimer thinks the coffee chain still has room to run. Shares were trading around $39 on Wednesday, down sharply from their 52-week high of $74.02.
Analyst Brian Bittner trimmed his price target on BROS to $66 from $82. He kept his “outperform” rating in place.
Bittner argues the stock is too cheap to ignore right now. He pegs valuation at under 14 times EBITDA estimates for a company still growing profit north of 20%.
His view is that the market is too worried about slowing same-store sales as the company laps its strongest growth quarters. He thinks Dutch Bros has the tools to keep comps healthy through 2027.
Same-Store Sales Forecast
Bittner’s team expects company-wide same-store sales growth of 7.3% in 2026. That’s forecast to cool to 4.2% in 2027.
He also pointed out that Dutch Bros has raised guidance in seven of its last eight quarters. That’s a track record he thinks deserves more credit from investors.
Earnings estimates for the company have also been trending upward lately. Bittner sees limited risk of that reversing, especially with coffee costs easing and margin forecasts staying conservative.
Dutch Bros isn’t the only one on Wall Street sticking with the stock. The consensus rating sits at “Moderate Buy,” with an average price target of $72.38.
Two analysts rate it Strong Buy, twenty rate it Buy, and four have it at Hold. That’s a pretty crowded bullish camp for a stock trading near its lows.
Recent Earnings Beat Expectations
The pullback comes despite a solid quarter. Dutch Bros reported EPS of $0.33 on August 5th, beating the $0.29 estimate.
Revenue came in at $550.85 million, ahead of the $525.38 million analysts expected. That’s up 33% from the same period last year.
Net margin landed at 4.91%, with return on equity at 10.01%. Analysts expect the company to post $0.88 in earnings per share for the full year.
Insiders have been buying too. Director Todd Penegor picked up 2,000 shares in August at an average price of $51.56, boosting his stake by over 37%.
Institutional ownership is heavy, sitting at 85.54% of the company. Insiders overall own 38.90% of the stock.
Other firms have been active on the name lately. Royal Bank of Canada cut its target to $70 from $75 in August, while TD Cowen restated a Buy rating with a $59 target.
Not every call has been rosy. DA Davidson cut its target from $85 to $60, and JPMorgan and Jefferies both set $60 targets, though all kept positive ratings.
Some of the caution ties back to spending. Capital expenditures reportedly jumped 49%, raising questions about near-term cash use.
Dutch Bros also lost out on a bidding war for additional store locations. That removed one potential path to faster growth.
Store expansion is still moving forward elsewhere. The company has new locations planned for Junction City and the Columbus area, and recently opened a shop in Champaign.
Shares closed Wednesday’s session up 3.4% on the day, trading at $39.40. Short interest on the stock currently stands at 12.4% of the total float.
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