Why BROS Stock Is Climbing Today

Dutch Bros (BROS) is one of today’s winners, advancing 6%. BROS owns and operates coffee stores.

Two Banks Were Upbeat on BROS Recently

After meeting with Dutch Bros’ management recently, Andrew Charles, an analyst at financial services firm TD Cowen, identified the name as one of his top picks. Charles expects analysts to raise their revenue estimates for the firm in 2025 and 2026.

A closeup of a customer tasting a freshly-made cold brew coffee product from the company’s shop.

That’s because the analyst predicts that the company’s top line will be boosted by the success of its mobile-ordering offering and its foray into selling food.

On Friday, Chris O’Cull, an analyst at investment bank Stifel Financial, increased his price target on BROS to $62 from $53. The analyst believes that the company met its goal of growing its comparable store sales by 1.5% year-over-year last quarter, and he thinks that its advertising strategy is bearing fruit. Additionally, the analyst is bullish on BROS’ loyalty offering.

Analysts, on average, expect the company’s earnings per share to climb to 55 cents in 2025 from 45 cents in 2024.

The Recent Price Action of BROS Stock

In the last month, BROS has advanced 11%, while it has gained 72% in the previous 12 months. Earlier today, the shares reached a new 52-week high of $59.99.

While we acknowledge the potential of BROS, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BROS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.