Morgan Stanley continues to view Dutch Bros Inc. (NYSE: BROS) favorably, maintaining an "Overweight" rating on the company's stock. This decision comes alongside adjustments in price targets from various financial institutions, reflecting a dynamic outlook on the beverage chain's market performance and future prospects. Dutch Bros, known for its drive-thru handcrafted beverages, has also provided its financial forecasts for fiscal year 2026, offering insights into its expected growth trajectory.
Morgan Stanley Sustains Positive Stance on Dutch Bros, Price Targets Shift
On February 13, 2026, financial titan Morgan Stanley reaffirmed its "Overweight" rating on Dutch Bros Inc., simultaneously elevating its price target for the company's shares from $82 to $85. This adjustment was primarily driven by what the firm described as a robust year-end performance by Dutch Bros, even as the company navigated various market disagreements. However, other prominent financial entities presented a more varied perspective on the stock. RBC Capital, for instance, revised its price target downwards from $80 to $75, yet still upheld an "Outperform" rating. This decision was influenced by Dutch Bros' fourth-quarter results and its fiscal year 2026 projections, which surpassed consensus forecasts and tempered buy-side expectations. Similarly, on the same day, Citi also reduced its price objective for Dutch Bros Inc., moving it from $82 to $81, while choosing to keep its "Buy" rating intact. For its fiscal year 2026, Dutch Bros Inc. anticipates revenues to fall between $2.00 billion and $2.03 billion. The company further projects a same-store sales growth rate of 3% to 5% and an adjusted EBITDA in the range of $355 million to $365 million. These figures account for the impact of higher coffee costs, which are expected to be mitigated by strategic reductions in selling, general, and administrative expenses. Additionally, Dutch Bros plans capital expenditures between $270 million and $290 million and aims to open at least 181 new shops across its system.
The varying adjustments in price targets from leading financial institutions highlight the complex and often divergent views analysts hold on publicly traded companies. While Morgan Stanley's increased price target signals strong confidence in Dutch Bros' operational strength and market position, the slight reductions from RBC Capital and Citi suggest a nuanced evaluation of the company's growth potential and financial outlook. Investors might interpret these movements as an indication of a healthy, if sometimes contested, market assessment, urging a closer look into Dutch Bros' fundamentals and strategic direction. Ultimately, the market's reception to Dutch Bros' future expansion plans and its ability to manage rising costs will be crucial in determining its long-term stock performance.