Oppenheimer thinks the Dutch Bros rally will keep percolating

[Dutch Bros Coffee Shop]
hapabapa

Dutch Bros (BROS [https://seekingalpha.com/symbol/BROS]) is up more than 20% over the last six weeks as investor sentiment has improved.

Oppenheimer thinks the rally could extend into the second half of the year. The firm raised estimates on Outperform-rated Dutch Bros (BROS [https://seekingalpha.com/symbol/BROS]) on its view that same-store sales catalysts are still powerful. Food products rolling out to more company stores and the new innovative Myst platform are expected to be sales drivers.

Analyst Brian Bittner and his team think consensus margin forecasts are conservatively modeled, especially if coffee cost headwinds continue to normalize into 2027. "In '26E, company segment margins could decline -60bps owing to coffee inflation, food roll-out, and build-to-suit rent step-ups. Our math suggests every 10% change in gross coffee pricing impacts COGS ~30bps and EBITDA ~$5M annually. If current prices hold, BROS's '27 coffee costs would be down ~20%," highlighted Bittner.

Crucially, the firm's view is that competitive risks for the coffee shop chain, the lynchpin for the bear case on BROS, remain overblown.

Oppenheimer lifted its price target on BROS to $82. Shares of Dutch Bros (BROS [https://seekingalpha.com/symbol/BROS]) were up 1.2% to $72.53 in Tuesday afternoon trading. The 52-week high for the stock is $74.65.

MORE ON DUTCH BROS

* Dutch Bros: Impressive Same Shop Growth, But The Valuation Cannot Be Defended [https://seekingalpha.com/article/4916304-dutch-bros-impressive-same-shop-growth-but-the-valuation-cannot-be-defended]
* Dutch Bros: Soaring Comps Reinforce This Unique Growth Story (Rating Upgrade) [https://seekingalpha.com/article/4915994-dutch-bros-soaring-comps-reinforce-this-unique-growth-story-rating-upgrade]
* Dutch Bros Inc. (BROS) Presents at 46th Annual William Blair Growth Stock Conference Transcript [https://seekingalpha.com/article/4911143-dutch-bros-inc-bros-presents-at-46th-annual-william-blair-growth-stock-conference-transcript]
* 7 Brew zooms to 777 locations in the U.S. as it looks to pressure Starbucks and Dutch Bros [https://seekingalpha.com/news/4603152-7-brew-zooms-to-777-locations-in-the-us-as-it-looks-to-pressure-starbucks-and-dutch-bros]
* CPI read: Coffee prices up double digits again in the U.S. [https://seekingalpha.com/news/4602151-cpi-read-coffee-prices-up-double-digits-again-in-the-u-s]