TD Cowen Worried About Rising Competition in the Protein Shake Category, Leading to TP Cut on BellRing Brands (BRBR)

BellRing Brands Inc. (NYSE:BRBR) is 1 of the 11 Best Beaten Down Growth Stocks to Buy Now.

TD Cowens, connected February 4, trimmed its people terms connected BellRing by 11.1% to $24 (from $27). Despite the TP cut, the steadfast retained its Hold standing connected BRBR. TD Cowens cited rising competitory strength successful the shingle category, particularly successful the warehouse nine channel, arsenic the cardinal crushed for the people terms cut. The steadfast added that higher earthy worldly costs, specifically whey protein, besides contributed (albeit to a lesser degree) to the TP cut. This update comes close aft BellRing released its Q1-FY2026 results connected February 3.

BellRing Brands' macromolecule drinks. Photo from the company's LinkedIn page

The net briefing showed BRBR’s gross maturation slowing down to 1%, arsenic the ready-to-drink (RTD) macromolecule shingle conception showed weakness successful the 1^st quarter. Revenue from this conception fell 2.2% YoY, arsenic income successful the warehouse nine transmission collapsed by 14.2% YoY. For TD Cowens, this depletion inclination indicates rising competitory strength successful the RTD macromolecule shingle market.

Additional information points successful BellRings’ supplementary information look to enactment this hypothesis. For one, retailers’ inventory has accrued successful 7 of the past 8 quarters, suggesting that banal stayed connected the shelves longer.

In effect to the anemic Q1-FY2026 sales, Darcy H. Davenoport, Bell Ring President and CEO, said that the institution volition beryllium expanding the frequence of its promotional activities. TD Cowens said that portion these demand-generating initiatives could boost gross growth, they would besides devour into margins, which are already getting squeezed owed to higher whey macromolecule costs.

BellRing Brands Inc. (NYSE:BRBR) distributes ready-to-drink (RTD) macromolecule shakes, ready-to-mix (RTM) powders, and nutrition bars crossed aggregate channels specified arsenic warehouse clubs, drugstores, e-Commerce, specialty stores, and convenience stores. The institution is located successful St. Louis, Missouri, and was founded successful March 2019.

While we admit the imaginable of BellRing Brands Inc. (NYSE:BRBR) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 12 Best Cheap Stocks to Buy Right Now and Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy.

Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.