BellRing Brands' Soft Q4 Comes Amid Stiff Competition, Slowing Consumption Trends, BofA

MT Newswires Live11-19

BellRing Brands' (BRBR) soft fiscal Q4 results and long-term sales algo cut come amid competition headwinds and a slump in consumption data, Bank of America said in a Wednesday research report.

BellRing's new 7% to 9% sales algo is below the expected long-term shake category growth, implying share losses moving forward, the brokerage stated.

While lower sales in H1, elevated commodity inflation, and ad spending timing are expected to ease in H2, the company would need to deliver above historical adjusted earnings before interest, taxes, depreciation, and amortization, which depends on top-line execution, analysts wrote.

For fiscal 2026 and 2027, BofA now expects adjusted EPS of $1.93 and $2.15, respectively, from $2.23 and $2.54 earlier. The brokerage expects 2028 adjusted EPS of $2.35.

Collaborating with a new broker and setting up an internal retail sales team could support in-store capabilities, according to BofA.

The brokerage said it downgraded the stock to neutral from buy and cut its price target to $28 per share from $50.

Price: 27.14, Change: +0.88, Percent Change: +3.33

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