The Rise of Dutch Bros: TD Cowen Upgrades Outlook

Written By Michael Gary Scott

TD Cowen Foresees Growth for Dutch Bros

In a move signaling an optimistic outlook, TD Cowen recently upgraded Dutch Bros (NYSE:BROS) from Hold to Buy as reported on May 10, 2024, by Fintel. This upgrade comes as a beacon of hope for investors eyeing the beverage company’s potential.

Expected Upside in Stock Price

With an average one-year price target of 35.61 as of May 8, 2024, Dutch Bros is poised for an 8.56% increase in value. Analysts showcase a range of forecasts from 30.30 to 46.20, painting a picture of potential growth in the company’s stock performance.

Financial Projections Paint a Rosy Picture

Anticipated annual revenue for Dutch Bros stands at 1,301MM, indicating a substantial 24.66% surge. Further adding to the promising forecast, the non-GAAP EPS is projected to be 0.62, emphasizing the financial strength and viability of the company.

Favorable Fund Sentiment and Shareholder Actions

Institutional support for Dutch Bros has seen a significant rise with 359 funds or institutions now reporting positions in the company. This surge represents a growing confidence in BROS, with an average portfolio weight increase of 9.48% among funds dedicated to the stock.

The put/call ratio of BROS stands at 0.68, indicating a bullish sentiment and affirming market optimism towards the company’s future.

Institutional Holders Show Confidence

TSG Consumer Partners leads the way, holding 46,551K shares of Dutch Bros, demonstrating a 49.93% ownership stake. Notable increases in portfolio allocations have been observed among top holders, showcasing a positive sentiment towards Dutch Bros’ growth trajectory.

Other prominent institutional holders, including T. Rowe Price Investment Management, Citadel Advisors, Marshall Wace, Llp, and VTSMX – Vanguard Total Stock Market Index Fund Investor Shares, have also demonstrated an increase in their positions, signaling confidence in the company’s outlook.

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A Glimpse into Dutch Bros’ Origins and Growth

Established in 1992 by brothers Dane and Travis Boersma, Dutch Bros has emerged as a high-growth franchisor and operator known for its focus on delivering high-quality beverages with exceptional speed and service. From its humble beginnings with a pushcart in Grants Pass, Oregon, Dutch Bros has expanded to 471 locations across 11 states as of June 30, 2021, symbolizing a journey of dedication, quality, and community impact.

By infusing its unique drive-thru experience with a commitment to employee welfare, customer satisfaction, and community engagement, Dutch Bros has solidified its position as a market leader in the beverage industry.