Analysts at JPMorgan upgraded Dutch Bros (NYSE:BROS) from Neutral to Overweight, raising the price target from $30.00 to $35.00.

The analysts noted significant changes in Dutch Bros' capital structure and shareholder composition in recent months. The company raised approximately $345 million through a primary equity offering on September 7, increasing the shares outstanding by about 8%. This capital infusion reduced the net debt-to-EBITDA ratio (including capital leases) from 4.4x to approximately 2.0x, enhancing the company's liquidity.

Furthermore, on November 15, the financial sponsor TSG sold 5.9 million shares at $28.16 each, lowering its stake to around 27% of the total share base, or roughly 48 million shares. Co-founder and Executive Chairman Trav Boersma retains about 37% of the total shares.

The analysts’ upgrade follows a comprehensive review of Dutch Bros, incorporating insights from the third-quarter 2023 results and forecasts for fiscal year 2024, derived from extended discussions with company management.