Shares of upstart coffee and hand-crafted beverage chain Dutch Bros (NYSE: BROS) are down 23% over the last month after the company reported underwhelming earnings on Aug. 7.

Now guiding to open "only" 150 stores, versus previous plans for 165 in 2024, Dutch Bros felt the wrath of the market. Following this earnings report, however, TD Cowen analyst Andrew Charles reiterated a buy rating and set a $47 price target over the next year for Dutch Bros, implying a 44% upside.

Here's why I can't help but agree with this optimistic outlook, at least over the long term.

Continue reading

Source Fool.com