BellRing Brands PT Cut to $27 as Q1 EBITDA Drops 28%
Barclays lowered BellRing Brands’ price target to $27 from $30 while maintaining an Overweight rating after management narrowed fiscal 2026 net sales guidance to $2.41–$2.46 billion and adjusted EBITDA guidance to $425–$440 million. The update cited tight margins from elevated promotional spending driven by intensified protein shake competition.
1. Barclays Cuts Price Target
On February 5, Barclays analyst Andrew Lazar reduced BellRing Brands’ price target from $30 to $27 while reiterating an Overweight rating, citing management’s revision of full-year targets and heightened competition in the protein shake market.
2. Q1 Financial Results
In its first fiscal quarter, BellRing reported net sales of $537.3 million, up 1% year-over-year, while adjusted EBITDA fell to $90.3 million from $125.3 million and net income declined to $43.7 million from $76.9 million. Growth in Dymatize sales of 7.5% was offset by a 2.2% drop in RTD beverage revenue.
3. Fiscal 2026 Guidance
Management narrowed full-year net sales guidance to a range of $2.41–$2.46 billion (4–6% growth) and adjusted EBITDA to $425–$440 million, with capital expenditures forecast at $8 million and expectations for stronger performance in the second half.
4. Margin Pressures and Share Repurchases
Elevated promotional activity and higher whey and input costs compressed gross margins to 29.9%, while the company repurchased $97 million of its own shares during the quarter to support shareholder value.