Dutch Bros (NYSE:BROS) stock is falling on Wednesday after the drive-through coffee chain’s shares were hit with a downgrade.
That downgrade has analysts at JPMorgan Chase dropping shares of BROS stock from an “overweight” rating to a “neutral” rating. That matches the analysts’ consensus “hold” rating based on 10 opinions.
Additionally, JPMorgan analysts also dropped the price target for BROS stock from $28 per share to $32 per share. That’s well below the analysts’ consensus price target of $39.92 per share. It also represents a potential 1.4% downside for the shares.
Why the Bearish BROS Stock Rating?
JPMorgan analysts were impressed by the latest earnings report from the coffee chain. That’s largely due to its revenue of $197.27 million, which is below Wall Street’s estimate of $208.34 million. However, flat earnings were just above analysts’ estimate of -1 cent per share.
It’s possible that weak earnings could continue to be a problem for BROS stock in the future. The company is feeling the effects of inflation increasing prices in the U.S. That could result in lower revenue throughout 2023 as customers decrease spending due to high prices.
BROS stock is also seeing heavy trading today as some 1 million shares change hands. That’s above its daily average trading volume of around 956,000 shares. It also has BROS stock down 7.2% as of Wednesday morning.
There’s even more stock market news traders are going to want to know about below!
Our stock coverage for Wednesday includes all of the biggest stories making the rounds today! Among that is what has shares of Livent (NYSE:LTHM), Li Auto (NASDAQ:LI), and Upstart (NASDAQ:UPST) stock moving today. All of that news is ready at the following links!
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On the date of publication, William White 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.
