Black Rifle Coffee's Omni-Channel Shift And RTD Products Driving Long-Term Growth, Analyst Says

Telsey Advisory Group analyst Sarang Vora reiterated an Outperform rating on the shares of BRC Inc BRCC with a price target of $10.

After the markets closed on Thursday, June 29, Black Rifle Coffee announced senior management changes, promoting Chief Marketing Officer Chris Mondzelewski to a newly created role of President.

The company also said both its Chief Operating Officer and Chief Financial Officer will depart the organization.

The analyst said these leadership changes should allow the company to strengthen operating business and select a consumer-focused financial leader to support the next

leg of growth.

Also, the analyst is encouraged that the 2Q23 pre-announced results were generally in line with expectations, and the 2023 outlook is unchanged, including strong sales growth of 33%-46% to $400 million - $440 million and adjusted EBITDA of $5 million - $20 million.

The analyst believes Black Rifle is in the early stages of multi-year growth, supported by its shift to an omni-channel model.

The success of its ready-to-drink (RTD) products as well as the expansion into the food, drug, and mass (FDM) channel and select retail outposts, should provide a long runway of growth, opined the analyst.

The analyst sees Black Rifle's strong multi-year growth profile, combined with its differentiated positioning, high customer loyalty, and support of veterans, should help the valuation.

Price Action: BRCC shares are trading higher by 0.10% at $5.24 on the last check Friday.