DA Davidson has increased its price target on BellRing Brands (NYSE: BRBR) to $34.00 from $32.00 while retaining a Buy rating, the firm said on Friday. The move followed BellRing’s most recent quarterly results and comes as the stock trades near its one-year low.
BellRing shares were trading at $19.48, close to a 52-week low of $19.45, a level that DA Davidson said leaves significant theoretical upside when compared with fair value estimates. The research note highlighted that the equity appears undervalued by those measures.
The adjustment in the price objective followed a notable pullback in the stock after the company reported first-quarter 2026 results - a selloff that saw shares fall 21.67% over the prior week. DA Davidson observed that the current valuation, at roughly 8 times next-twelve-months EBITDA, effectively assumes substantial challenges for the Premier Protein brand. The firm characterized that multiple as conservative in light of BellRing’s other metrics, including a price-to-earnings ratio of 14.6 and a free cash flow yield around 11%.
Analysts at DA Davidson noted signs that consumption trends for BellRing products are slowly improving as merchandising changes take effect. The research team also pointed to several potential growth levers the company can pursue - broader distribution, stepped-up advertising and promotional work, and continued product innovation. Over the last twelve months the company recorded revenue growth of 10.59%, the note said.
Despite the more constructive view on valuation and some operational improvement, DA Davidson emphasized a cautious posture. The firm described its stance as a wait-and-see approach on how the Premier Protein brand will perform in what it called a more normalized and rational competitive environment. In its commentary the firm was explicit that it was "not pounding the table" on the stock and suggested shares may trade in a range until competitive activity in the category stabilizes.
Other recent broker activity has produced mixed signals for investors. BellRing’s reported first-quarter 2025 results beat analyst expectations, with GAAP earnings per share of $0.37 versus a consensus forecast of $0.3178. Revenue for the quarter came in at $537.0 million, ahead of an anticipated $505.55 million.
Following those results and subsequent guidance moves, a number of firms adjusted their models and price targets:
- Jefferies reduced its price target to $38 from $49, citing rising competition and higher input costs in the ready-to-drink shake category.
- TD Cowen lowered its price target to $24 from $27 after BellRing trimmed fiscal 2026 guidance, attributing the revision to increased promotional activity and higher whey costs.
- Stifel cut its target to $34 from $50, noting first-quarter performance beat expectations in part because of favorable shipment timing.
- William Blair reiterated an Outperform rating even as BellRing narrowed its fiscal 2026 guidance by reducing the top end of the forecast range.
These adjustments have created a mixed picture for investors: upside potential implied by select valuation metrics and improving consumption, counterbalanced by competitive pressures, input-cost headwinds, and elevated promotional activity that have prompted guidance changes and a string of analyst reassessments.
For market participants focused on consumer goods and packaged food sectors, the developments at BellRing highlight the interaction between near-term promotional dynamics and longer-term brand traction. For investors evaluating BRBR specifically, DA Davidson’s move signals a cautiously constructive view on valuation but an acknowledgement that market stabilization will be a prerequisite for more decisive upside.