1 Wall Street Analyst Thinks Dutch Bros Stock Is Going to $80. Is It a Buy?

Dutch Bros (NYSE: BROS) recently issued new long-term growth targets that have Wall Street analysts raising their near-term price targets for the stock. Wells Fargo analyst Anthony Trainor initiated coverage of Dutch Bros with an overweight (buy) rating and a $80 price target, implying 28% over the current $62.50 share price. Should a long-term investor start a position in the stock right now?

Dutch Bros has lots of room to grow

Dutch Bros stock rocketed to a 52-week high of $86.88 this year. It closed Apr. 2 trading 28% off those highs, bringing its valuation back to a reasonable level. The company said that revenue grew 35% year over year last quarter, with same-shop sales up 6.9%.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Management had previously set its long-term goal at 4,000 locations within 15 years. That would suggest tremendous long-term upside over the 982 locations opened last quarter. However, at a recent investor presentation, management updated its long-term goal to 7,000 shops. The company is aiming for 20% annual revenue growth while growing the number of locations at a mid-teens rate with low-single-digit same-shop sales.

These growth targets should support the stock's current valuation. The shares trade at 5.1 times trailing revenue, which is fair for a fast-growing beverage chain. With the consensus analyst estimate projecting revenue to grow 23% this year, the stock could be trading at $77 this time next year if it's trading at the same multiple of revenue.

Keep in mind that the company experienced inconsistent same-shop sales performance during 2022, when inflation was heating up, so if the economy and consumer spending weaken, the stock could become volatile. There's nothing to prevent the stock from rerating at a lower valuation that sends the stock lower in the near term.

Still, Dutch Bros is clearly growing into a nationwide chain. The stock should continue to grow roughly in line with the company's revenue. Investors that dollar-cost average in the stock should earn excellent returns over the long term.

Should you invest $1,000 in Dutch Bros right now?

Before you buy stock in Dutch Bros, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dutch Bros wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $676,774!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 1, 2025

Wells Fargo is an advertising partner of Motley Fool Money. John Ballard has positions in Dutch Bros. The Motley Fool recommends Dutch Bros. The Motley Fool has a disclosure policy.