Morgan Stanley analyst Megan Clapp downgraded BellRing Brands (NYSE: BRBR) from Overweight to Equalweight with a price target of $13.00 (from $24.00).

The analyst comments: “We are downgrading BRBR to Equal-weight following 2Q results this morning, which included a sizable EPS miss and a -25% cut to the FY EBITDA outlook amid a "perfect storm" of heightened consumer price sensitivity, sustained competitive promotional intensity, and rising cost inflation. Our previous thesis and reasons for sticking with the OW rating up until this point had centered on the risk/reward at depressed levels combined with what we believed was visibility into a path toward a sustainable, above-average topline growth profile given the attractiveness of the category and BRBR's market-leading brand metrics and opportunity in underpenetrated channels. That call has clearly proved wrong, with the updated guide now implying a muted ~1% topline growth outlook for the FY and coming at a much higher cost.”

For an analyst ratings summary and ratings history on BellRing Brands click here. For more ratings news on BellRing Brands click here.

Shares of BellRing Brands closed at $10.63 yesterday.