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Dutch Bros Shares Experience Significant Growth Ahead of Investor Day

Key Takeaways

On Monday, shares of Dutch Bros experienced a notable increase of nearly 8%, fueled by encouraging analyst assessments as the coffee chain prepares for its investor day set for Thursday.

Morgan Stanley commenced its coverage on Dutch Bros (BROS) with an ‘Overweight’ designation, highlighting the company’s effective business model and the substantial growth potential associated with expanding its food offerings and enhancing mobile ordering capabilities.

The analysts at Morgan Stanley expressed their positive outlook on Dutch Bros by stating, “[Dutch Bros] checks many boxes for us: a well-liked brand with good loyalty and engagement, a robust growth sector ripe for innovation and disruption, a straightforward operational framework, a positive employee culture, strong management, and impressive unit growth that aligns with solid unit economics, alongside ample opportunities for further development.”

They set a price target of $82 for Dutch Bros shares, which aligns with the consensus among analysts surveyed by Visible Alpha.

Dutch Bros shares have soared more than double over the past year, rising nearly 8% on Monday to finish at $70.45.

UBS also maintains a ‘buy’ rating for Dutch Bros, projecting that the stock is well-positioned for continued growth, bolstered by rising sales propelled by mobile ordering and the addition of new menu items. UBS has set a price target of $90 for the stock.

In recent years, Dutch Bros has significantly expanded its presence, effectively doubling its operational footprint over the past three and a half years and celebrating the opening of its thousandth location in February.

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