1 Wall Street Analyst Thinks Dutch Bros Stock Is Going to $80. Is It a Buy?
Dutch Bros (NYSE: BROS) recently issued new long-term growth targets that have Wall Street analysts raising their near-term price targets for the stock. Wells Fargo analyst Anthony Trainor initiated coverage of Dutch Bros with an overweight (buy) rating and a $80 price target, implying 28% over the current $62.50 share price. Should a long-term investor start a position in the stock right now?Dutch Bros stock rocketed to a 52-week high of $86.88 this year. It closed Apr. 2 trading 28% off those highs, bringing its valuation back to a reasonable level. The company said that revenue grew 35% year over year last quarter, with same-shop sales up 6.9%.Management had previously set its long-term goal at 4,000 locations within 15 years. That would suggest tremendous long-term upside over the 982 locations opened last quarter. However, at a recent investor presentation, management updated its long-term goal to 7,000 shops. The company is aiming for 20% annual revenue growth while growing the number of locations at a mid-teens rate with low-single-digit same-shop sales.Continue reading
Dutch Bros (NYSE: BROS) recently issued new long-term growth targets that have Wall Street analysts raising their near-term price targets for the stock. Wells Fargo analyst Anthony Trainor initiated coverage of Dutch Bros with an overweight (buy) rating and a $80 price target, implying 28% over the current $62.50 share price. Should a long-term investor start a position in the stock right now?
Dutch Bros stock rocketed to a 52-week high of $86.88 this year. It closed Apr. 2 trading 28% off those highs, bringing its valuation back to a reasonable level. The company said that revenue grew 35% year over year last quarter, with same-shop sales up 6.9%.
Management had previously set its long-term goal at 4,000 locations within 15 years. That would suggest tremendous long-term upside over the 982 locations opened last quarter. However, at a recent investor presentation, management updated its long-term goal to 7,000 shops. The company is aiming for 20% annual revenue growth while growing the number of locations at a mid-teens rate with low-single-digit same-shop sales.
