Piper Sandler analysts upgraded shares of Dutch Bros Inc. (NYSE:BROS) to Overweight from Neutral in a note Monday, lifting the price target to $37 from $32 per share.
The firm stated it decided to raise the stock's rating following its recent 4Q23 results and after contemplating several dynamics.
"Between the equity raise in September, the SSS strength exhibited since that time, and the formal announcement of Mobile Order & Pay testing and implementation which will take place throughout this year; we think now is the right time for us to become more constructive on BROS," explained Piper Sandler.
"While they don't view the situation without risk, they are paying particularly close attention to balance sheet leverage/ capex/free cash flow dynamics, which need idiosyncratic monitoring at BROS, when we put it all together, we like the setup here enough to move off of the sidelines–where we’ve been since launching coverage at Piper Sandler this past June," they added