Today, investors in Dutch Bros (NYSE:BROS) are having quite the day. Shares of BROS stock are up 13% at the time of writing on an otherwise sleepy day on Wall Street. As of 1 p.m., the three major U.S. indices are all trading roughly flat on the day.
Accordingly, any sort of activity from a big mover is something investors are likely to jump on.
As we’ve covered in past weeks, the recent Dutch Bros initial public offering (IPO) has gone off essentially without a hitch. The company raised its IPO price to $23 per share in mid-September, which was quickly obliterated on opening day. In fact, today’s price action in BROS stock has moved this stock back into a double-up for investors who were able to get in at the IPO price.
That said, BROS stock still remains approximately 20% off its highs seen in late September. Whether BROS stock can get back to making fresh new highs remains to be seen. However, investors seem to like one strong catalyst that is taking shares higher today.
Let’s dive into why Dutch Bros is on the move today.
BROS Stock Higher on Wall Street Upgrades
Today, a number of reports are circulating, highlighting Dutch Bros’ bullish analyst ratings on Wall Street. Analysts from Jeffries, Baird, JPMorgan, Piper Sandler and Cowen have all initiated coverage on Dutch Bros. Each of these analysts have placed the equivalent of a buy rating on this stock. Additionally, the average price target from these five analysts is currently $54.60.
Given the company’s current share price around $48, this target implies approximately 14% upside from these levels.
For a stock that’s already doubled in approximately one month, these targets may seem aggressive. However, analysts seem to like the relative scarcity of mid-cap growth stocks in the restaurant sector. Dutch Bros’ growth trajectory is impressive. And analysts believe the capital this company raised via its IPO could accelerate growth in the near term.
Accordingly, this is a stock investors are growing increasingly bullish on today.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.