BellRing Brands (NYSE:BRBR) shares tumbled after a bearish note from Deutsche Bank analyst Stephen Powers, who cautioned investors about "another potentially difficult quarter" ahead of the company's February 3 earnings release.
The stock initially fell 7.5% on the report and the downturn accelerated in morning trading, with shares plunging as much as 11% intraday. Market activity included a large block trade of 715,817 shares - roughly 0.6% of the company's float - executed at $25 per share for a reported total of $17.9 million.
Powers reduced his BellRing price target to $31 from $35 following recent channel tracking for the Premier Protein line that came in below the company’s management expectations. The firm’s signature Premier product portfolio recorded a 1.5% decline in the fiscal first quarter, compared with company guidance that had called for approximately flat performance.
The analyst highlighted a combination of January’s exit rate and what he described as "still-intense competition" in the protein category, saying these dynamics increase the risk the company may need to lower its full-year guidance. BellRing’s current full-year outlook stands at $2.41 billion to $2.49 billion in sales and $425 million to $455 million in EBITDA.
Reflecting that concern, Deutsche Bank trimmed its fiscal 2026 estimates for BellRing. The bank now projects $2.367 billion in sales and $420 million in EBITDA for the year, both figures sitting below the company’s stated guidance range.
While Powers acknowledged that broader consumer trends favor protein consumption over the longer term, he expressed reservations about BellRing’s near-term ability to expand shelf presence and defend market share amid heightened competition in the protein aisle.
The developments - the analyst’s downgrade, the downward revisions to estimates, and the block trade amid rapid share price movement - underscore investor sensitivity to retail execution and competitive pressures for companies focused on protein powders and shakes. Traders will be watching the company’s February 3 earnings report for confirmation of sales trends and management’s reaction to the channel signals that prompted the analyst’s note.