UBS, TD Cowen Slash BellRing Brands Targets to $23/$24 After 0.8% Q1 Sales Gain
UBS cut BellRing’s price objective to $23 from $26 and maintained Neutral, while TD Cowen lowered its target to $24 from $27 at Hold on higher whey costs and promotions. Q1 net sales reached $537.3 million, up 0.8%, and operating profit fell to $78.5 million, down $36.8 million on gross margin compression.
1. Analyst Price Target Cuts
UBS reduced BellRing Brands’ price objective from $26 to $23 and maintained a Neutral rating, citing mixed margin outlook. TD Cowen also cut its target to $24 from $27 with a Hold rating, pointing to increased promotional activity in the shake category and rising whey costs.
2. Q1 Financial Performance
BellRing delivered net sales of $537.3 million in Q1, up 0.8% year-over-year driven by 0.7% volume growth and a 0.1% price/mix increase. Operating profit declined to $78.5 million, down $36.8 million from the prior year, reflecting gross margin compression.
3. Outlook and Cost Pressures
Management affirmed that operating plans remain on track despite tighter margins. Ongoing promotional frequency and input cost inflation are expected to weigh on full-year guidance, prompting analysts to adjust forecasts downward.