BellRing Brands’ TP Cut 11.1% to $24 as Lawsuit Alleges $2.9B Wipeout
TD Cowen cut BellRing’s target price 11.1% to $24, noting RTD shake sales fell 2.2% and warehouse club sales plunged 14.2% with stronger competition and higher whey protein costs. Separately, Hagens Berman sued BellRing over alleged misrepresentation of 2025 sales growth, claiming a $2.9 billion value wipeout.
1. Analyst Cuts Target Price Over Competition and Costs
TD Cowen lowered BellRing Brands’ target price by 11.1% to $24 after Q1-FY2026 results showed 1% revenue growth, with RTD protein shakes down 2.2% and warehouse club channel sales plunging 14.2%. The firm cited intensifying competition in the shake category and rising whey protein costs as drivers of the revision.
2. Securities Lawsuit Claims $2.9B Stock Value Wipeout
Hagens Berman filed a securities fraud suit against BellRing Brands on February 11, accusing the company and certain executives of misleading investors about the true drivers of 2025 sales growth. The complaint alleges these misrepresentations resulted in an estimated $2.9 billion erosion in stock value and sets a March 23 lead plaintiff deadline.