Dutch Bros ( NYSE: BROS ) faces lofty 2023 earnings expectations, clouding its “industry leading growth” potential, according to Wedbush analyst Nick Setyan.
“We view BROS as one of a handful of growth restaurants with realistic long-term
revenue and unit growth targets,” he told clients in an initiation note on Wednesday. “However, we believe 2023 consensus adjusted EBITDA growth expectations are overly aggressive.”
Setyan added that “management gains nothing by providing equally aggressive 2023 guidance” and will likely instead offer a more cautious outlook. He started coverage with a Neutral rating and a $37 price target.
Shares of Dutch Bros ( BROS ) declined modestly in premarket trading on Wednesday.
The Seeking Alpha Quant team shifted to a Sell rating on Dutch Bros on Wednesday .
For further details see:
Wedbush starts coverage of Dutch Bros at Hold