Morgan Stanley Downgrades Black Rock Coffee Bar (BRCB) to Equalweight

Morgan Stanley analyst Brian Harbour downgraded Black Rock Coffee Bar (NASDAQ: BRCB) from Overweight to Equalweight with a price target of $9.00 (from $22.00).

The analyst comments "Downgrading BRCB to EW: Looking at the numbers there remains a disconnect between BRCB's growth profile and valuation, but we're aware that narrative, execution, and qualitative concerns can sometimes override that. For a newly public young company in a large competitive category (especially right now), hitting guidance isn't enough – upside to most KPIs is often key to showing the durability of a growth concept and drawing investor interest. Comps have been good for BRCB and margins already strong, but we'd like to see new store performance break out (this happened for BROS a few years after IPO) and greater consistency with openings. We are not modeling a miss in 2Q specifically, or cutting numbers, but we use a lower multiple for now, with upside skew to our $9 PT. Rebuilding investor confidence could push this multiple back higher over time."

For an analyst ratings summary and ratings history on Black Rock Coffee Bar click here. For more ratings news on Black Rock Coffee Bar click here.

Shares of Black Rock Coffee Bar closed at $8.03 yesterday.

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Full Circle Lithium closes $5.14M private placement