Key Takeaways
- Dutch Bros shares surged nearly 8% on Monday amid positive comments from analysts ahead of the drive-through coffee chain’s planned investor day on Thursday.
- Morgan Stanley initiated coverage on the stock with an ‘overweight’ rating and an $82 price target, in line with the average estimate of analysts polled by Visible Alpha.
- UBS maintained its ‘buy’ rating on the stock and a price target of $90, about 28% higher than the closing price for Dutch Bros shares on Monday.
Dutch Bros shares surged Monday amid positive comments from analysts ahead of the drive-through coffee chain’s investor day scheduled for Thursday.
Morgan Stanley initiated coverage on Dutch Bros (BROS) with an ‘Overweight’ rating, noting that the company has a sensible model with a “sizeable opportunity” to grow by adding food and ramping up mobile ordering.
“[Dutch Bros] checks many boxes for us: a well-liked brand with good loyalty and engagement, a good growth category with room for innovation and disruption, a straightforward operating model, good staffing model/employee culture, strong management, robust unit growth currently hitting targets underpinned by good unit economics, and ample development white space,” Morgan Stanley analysts said in the note.
Morgan Stanley set a price target of $82 for Dutch Bros shares, in line with the average price target of analysts polled by Visible Alpha.
Dutch Bros shares, which have more than doubled over the past 12 months, gained nearly 8% on Monday to close at $70.45.
UBS, which has a ‘buy’ rating on Dutch Bros stock, said the shares are positioned for further gains amid the likelihood of continued sales growth, with mobile sales and menu additions helping fuel the momentum. UBS has a $90 price target on the stock.
Dutch Bros has roughly doubled its footprint over the past three-and-a-half years and opened its thousandth location in February.