Roth MKM Analyst Raises Brc's Price Target by 16.7% on Positive Q1 2024 Performance

Roth MKM's George Kelly raised their price target on Brc (NYSE: BRCC) by 16.7% from $6 to $7 on 2024/05/10. The analyst reiterated their Strong Buy rating on the stock.

Brc, a company specializing in coffee, coffee brewing equipment, and outdoor and lifestyle apparel, recently reported its Q1 2024 earnings. According to Kelly, the results were "mostly better than expected as management continues to unlock brand value and create a higher-margin, more predictable financial model," with "significant opportunity" for further progress.

In Q1 2024, Brc surpassed expectations across the board. The company reported an EPS of $0.01, beating the Zacks Consensus Estimate of $(0.03) and showing a staggering 112.5% increase from Q1 2023's $(0.08). Additionally, Brc's revenue of $98.39 million exceeded the Zacks Consensus Estimate by 0.63% and Q1 2023's $83.49 million by 17.8%. The company also saw a notable increase in gross margin, reaching 42.9% compared to Q1 2023's 33%. Adjusted EBITDA rose to $14.1 million, a significant improvement from Q1 2023's $(5.2 million).

Looking ahead to the full year of 2024, Brc's management provided guidance. They anticipate revenue in the range of $430 million to $460 million, with a gross margin of 37% to 40%. The adjusted EBITDA guidance was also revised, now expected to be between $32 million and $42 million, up from the previous range of $27 million to $40 million.

CEO Chris Mondzelewski expressed his excitement about the company's partnership with Keurig Dr Pepper, stating that it would enhance the quality and availability of Brc's coffee offerings. Mondzelewski emphasized how the company's mission and business align, allowing them to extend their support of the Veteran and first responder community.

CFO Steve Kadenacy highlighted the company's focus on operational excellence and the positive impact it has had on profitability. Kadenacy also mentioned that the strategic partnership with KDP would not only drive top-line growth but also improve operational efficiencies within the business.

According to the latest analyst ratings, Brc enjoys strong support from the investment community. 100% of top-rated analysts currently rate BRCC as a Strong Buy or Buy, with no analysts considering it a Hold or recommending selling the stock.

Since Brc's latest quarterly report, the stock price has increased by 16%. However, year-over-year, the stock is down 7.7%. During the same period, Brc has underperformed the S&P 500, which has experienced a decline of 26.2%.

Roth MKM analyst George Kelly, who raised the price target on Brc, holds a solid reputation among Wall Street analysts. Ranked in the top 22% out of 4,579 analysts by WallStreetZen, Kelly has an average return of 3.8% and an impressive 45.7% win rate. Their specialization spans across sectors, including Consumer Cyclical and Healthcare.

Brc Inc., founded in 2014 and based in Salt Lake City, UT, offers a range of products through various retail channels, including convenience, grocery, drug, mass merchandise, outdoor, do-it-yourself, and lifestyle retailers. The company also operates Black Rifle Coffee shops, both company-operated and franchised, and engages in the production of podcasts and digital and print journals.

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