Dutch Bros slides after Piper Sandler downgrades to 'neutral'

Dutch Bros

19/08/2024 10:32

** Shares of coffee chain Dutch Bros  BROS.N  slip 5% to $31
premarket
    ** Piper Sandler downgrades stock to "neutral" from
"overweight"; trims PT to $36 from $41, new PT still an upside
of about 10% to co's last close 
    ** Brokerage says always viewed BROS as a higher risk/higher
reward situation given its industry, but sees it more balanced
at current levels, hence the downgrade
    ** Recent industry traffic and promotional environment
trends could offset tailwinds boosting co's speed to become free
cash flow positive - brokerage
    ** However, PS says it is impressed with CEO Christine
Barone's impact on co with advertising and real estate changes,
continues to see tailwinds for same store sales in early 2025
    ** Ten brokerages rate co "buy" or higher, while three rate
it "hold", median PT at $38 - LSEG 
    ** Stock up about 3% YTD, till last close 

 (Reporting by Purvi Agarwal in Bengaluru)
 ((Purvi.Agarwal@thomsonreuters.com))