Dutch Bros: UBS raises PT to $85 from $80, maintains Buy rating
UBS Group AG, a leading Swiss financial services provider, has raised its price target for Dutch Bros Inc. (NYSE: BROS) to $85 from $80, maintaining its Buy rating on the stock. The move comes following the company's strong second-quarter earnings report, which saw revenue of $415.81 million, a 28% year-over-year increase, and earnings per share (EPS) of $0.26, a 47.46% surprise [2].
The positive earnings report, along with the company's strong operational efficiency and margin expansion, has led analysts to revise their price targets upwards. UBS's new price target reflects the company's expected significant growth in same-store sales and EBITDA by 2026. Additionally, the company's plans to open at least 160 new stores this fiscal year and project revenues up to $1.60 billion have contributed to the upward revision [3].
Despite the positive outlook, UBS analysts acknowledge that certain AI stocks may offer greater upside potential and carry less downside risk. However, they maintain their Buy rating on Dutch Bros Inc., highlighting the company's strong fundamentals and growth prospects. The stock has seen a 16% surge in its value following the Q2 earnings beat, with analysts from Guggenheim, Barclays, and Morgan Stanley raising their price targets to $76, $92, and $84, respectively [3].
As investor sentiment remains volatile, UBS Group AG's focus on technological innovation and strategic investments highlights its commitment to resilience and growth. The company's diversified portfolio and robust financial position, with USD 745.8 billion in current deposits and USD 580 billion in current loans, provide a solid foundation for navigating the uncertain financial landscape [1].
References:
[1] https://www.ainvest.com/news/swiss-investor-sentiment-plummets-53-8-august-ubs-group-ag-financial-breakdown-2508/
[2] https://finance.yahoo.com/news/td-cowen-maintains-buy-dutch-034549760.html
[3] https://stockstotrade.com/news/dutch-bros-inc-bros-news-2025_08_25/
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