Dutch Bros (NYSE:BROS) Given New $66.00 Price Target at Oppenheimer

Key Points

• Oppenheimer lowered Dutch Bros’ price target to $66 from $82 while maintaining an “outperform” rating, implying 67.86% upside from the previous close. Analysts overall remain positive, with a “Moderate Buy” consensus and an average target of $72.38.
• Dutch Bros shares traded at $39.32, near their 52-week low of $37.40 and well below the 52-week high of $74.02. The stock has also fallen below its 50-day and 200-day moving averages.
• The company exceeded quarterly expectations, reporting $0.33 in EPS versus $0.29 expected and revenue of $550.85 million, up 32.5% year over year. Director Todd Penegor also purchased 2,000 shares, while institutional investors own 85.54% of the stock.

Dutch Bros (NYSE:BROS - Get Free Report) had its target price lowered by equities researchers at Oppenheimer from $82.00 to $66.00 in a report issued on Wednesday, Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Oppenheimer's price target indicates a potential upside of 67.86% from the company's previous close.

BROS has been the topic of a number of other research reports. Freedom Capital upgraded shares of Dutch Bros to a "strong-buy" rating in a research report on Wednesday, July 1st. Royal Bank Of Canada cut their price target on Dutch Bros from $75.00 to $70.00 and set an "outperform" rating for the company in a research note on Thursday, August 6th. Seaport Research Partners assumed coverage on Dutch Bros in a research report on Wednesday, September 16th. They set a "buy" rating and a $50.00 price target on the stock. TD Cowen restated a "buy" rating and set a $59.00 price objective on shares of Dutch Bros in a research note on Friday, September 18th. Finally, Telsey Advisory Group raised their price objective on Dutch Bros from $66.00 to $74.00 and gave the stock an "outperform" rating in a research note on Friday, July 31st. Two equities research analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $72.38.

Dutch Bros Stock Performance

Shares of Dutch Bros stock traded up $1.22 during trading on Wednesday, reaching $39.32. The company's stock had a trading volume of 532,938 shares, compared to its average volume of 4,275,098. The company has a quick ratio of 1.19, a current ratio of 1.35 and a debt-to-equity ratio of 0.20. The business's 50-day moving average price is $50.32 and its 200-day moving average price is $55.24. Dutch Bros has a 52 week low of $37.40 and a 52 week high of $74.02. The firm has a market cap of $6.87 billion, a PE ratio of 55.01, a P/E/G ratio of 1.34 and a beta of 2.28.

Dutch Bros (NYSE:BROS - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.33 EPS for the quarter, topping analysts' consensus estimates of $0.29 by $0.04. Dutch Bros had a net margin of 4.91% and a return on equity of 10.01%. The business had revenue of $550.85 million for the quarter, compared to analyst estimates of $525.38 million. During the same period last year, the firm earned $0.26 earnings per share. Dutch Bros's revenue for the quarter was up 32.5% compared to the same quarter last year. Equities analysts forecast that Dutch Bros will post 0.88 earnings per share for the current year.

Insider Transactions at Dutch Bros

In other news, Director Todd Penegor acquired 2,000 shares of the stock in a transaction on Thursday, August 13th. The stock was acquired at an average cost of $51.56 per share, for a total transaction of $103,120.00. Following the completion of the transaction, the director directly owned 7,358 shares in the company, valued at approximately $379,378.48. This trade represents a 37.33% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. 38.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Dutch Bros

A number of large investors have recently modified their holdings of the business. Westfield Capital Management Co. LP acquired a new stake in shares of Dutch Bros in the 4th quarter valued at approximately $108,948,000. Norges Bank acquired a new position in Dutch Bros during the 4th quarter worth approximately $96,951,000. Interval Partners LP acquired a new position in Dutch Bros during the 4th quarter worth approximately $57,276,000. Wellington Management Group LLP lifted its stake in Dutch Bros by 38.0% in the 2nd quarter. Wellington Management Group LLP now owns 3,090,882 shares of the company's stock valued at $221,956,000 after purchasing an additional 851,075 shares during the last quarter. Finally, Danica Pension Livsforsikringsaktieselskab bought a new position in Dutch Bros in the 1st quarter valued at approximately $33,569,000. Institutional investors and hedge funds own 85.54% of the company's stock.

Trending Headlines about Dutch Bros

Here are the key news stories impacting Dutch Bros this week:

• Positive Sentiment: Analysts still see substantial upside. DA Davidson reduced its price target from $85 to $60 but maintained a Buy rating, while JPMorgan and Jefferies also set $60 targets with Overweight ratings. Those targets imply significant appreciation from the recent share price, suggesting analysts view the selloff as excessive and expect long-term growth to continue. DA Davidson Cut Its Dutch Bros Target
• Positive Sentiment: Store expansion remains active. Dutch Bros plans new locations in Junction City and the Columbus area, is pursuing former Salad and Go sites, and recently opened a shop in Champaign. Continued unit growth could support revenue expansion and strengthen the company’s national footprint. Dutch Bros Coffee plans three Columbus-area shops
• Neutral Sentiment: The long-term growth thesis remains under review. Recent commentary focuses on whether Dutch Bros’ larger capital budget can generate sufficient returns and whether the company’s expansion plans justify its valuation. The stock remains well below its 52-week high, while its elevated earnings multiple leaves it sensitive to changes in growth expectations. Does Dutch Bros’ Bigger Capex And Dropped Deal Reframe The Long-Term Growth Story
• Negative Sentiment: Higher investment and a lost bidding war pressured the stock. A reported 49% increase in capital expenditures raised concerns about near-term cash use and returns. Dutch Bros also failed to win a deal for additional locations, removing a potential source of faster growth. These issues prompted several analysts to lower their targets to $60, despite retaining constructive ratings. Analyst target reduction and Dutch Bros capital spending concerns

Dutch Bros Company Profile

Dutch Bros Inc is a drive-thru beverage company that operates the Dutch Bros coffeehouse brand. The company serves a broad menu of handcrafted beverages, including specialty coffees, cold brews, teas, energy drinks, lemonades, smoothies and flavored sodas, along with a selection of snacks and other food items.

Dutch Bros was founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon. From its original pushcart operation, the company developed a drive-thru-focused model built around convenience, customized drinks and customer service.

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