BellRing Brands stock price target lowered to $34 by Stifel on delayed initiatives

Stifel, a leading investment bank, has lowered its price target on BellRing Brands (NYSE: BRBR) to $34.00 from $50.00 while maintaining a Buy rating on the stock. This adjustment comes as BellRing's shares have plummeted 72% over the past year, currently trading at $20.88, near its 52-week low of $20.12. The reduction follows BellRing's first-quarter results for 2025, which exceeded expectations due to favorable shipment timing, according to Stifel analyst Matthew Smith. However, the company has reduced the high-end of its revenue and EBITDA outlook for fiscal year 2026, citing delays in merchandising initiatives and increased promotional activity from competing brands. Despite surpassing analyst expectations with an earnings per share (EPS) of $0.37 and revenues of $537 million, BellRing's stock underperformed due to concerns about a softer second quarter outlook and revised FY26 guidance. Stifel notes that BellRing shares now trade below an 8x EBITDA multiple based on FY27 estimates, presenting an attractive upside potential as consumption growth is expected to improve in the second half of the year and margin recovery takes hold. InvestingPro data shows BRBR currently trades at a P/E of 16.87 with a 10.59% revenue growth over the last twelve months, indicating that the stock appears significantly undervalued despite its solid financial health score. In other recent news, William Blair has reiterated an Outperform rating on BellRing Brands, highlighting solid category growth and strong brand equity for Premier Protein, while also pointing out challenges such as timing factors, competitive promotions, and cost pressures.