Wall Street is bullish on Black Rock Coffee Bar's bid to challenge Starbucks and Dutch Bros

[Coffee beans]
Henrik Sorensen

The analyst quiet period on Black Rock Coffee Bar expired on Tuesday to free up analysts to post ratings.

Jefferies started off coverage on Black Rock Coffee Bar (NASDAQ:BRCB [https://seekingalpha.com/symbol/BRCB]) with a Buy rating. Analyst Andy Barish called the company a leading brand in the emerging customizable, convenient beverage category, which combines the strengths of Dutch Bros (BROS [https://seekingalpha.com/symbol/BROS]) through people, culture, and drive-thru, along with the comfortable, third-place coffeehouse that Starbucks (SBUX [https://seekingalpha.com/symbol/SBUX]) once was and is trying to be. "We believe the company will exceed its growth algo for the near term, making valuation look less rich in reality," highlighted Barish.

Notably, Black Rock Coffee Bar (NASDAQ:BRCB [https://seekingalpha.com/symbol/BRCB]) also earned bull ratings from Morgan Stanley, Stifel, Baird, William Blair, and Raymond James. Morgan Stanley noted the company checks most of the boxes for evaluating a growth restaurant concept.

On the more cautious side, J.P. Morgan started off Black Rock Coffee Bar (BRCB [https://seekingalpha.com/symbol/BRCB]) with a Neutral rating as the small brand attempts to break out in a lucrative category. However, analyst John Ivankoe said where there is risk, there is potential opportunity. Ivankoe and his team think there is an opportunity for Black Rock Coffee Bar (BRCB [https://seekingalpha.com/symbol/BRCB]) to gain more younger, female business with its established in-store seating options, targeted customized beverages, and expanding use of digital/social marketing.

Black Rock Coffee Bar (BRCB [https://seekingalpha.com/symbol/BRCB]) fell 0.5% in early trading on Tuesday to $22.02. The IPO was priced at $20 per share on September 11. The stock hit a post-IPO high of $30.40 on September 15.

Seeking Alpha analysts [https://seekingalpha.com/symbol/BRCB/analysis] have a mixed view of Black Rock Coffee Bar (BRCB [https://seekingalpha.com/symbol/BRCB]), with two Hold ratings stacking up against a single Buy rating.

MORE ON BLACK ROCK COFFEE BAR

* Black Rock Coffee Bar: Too Hot For My Taste [https://seekingalpha.com/article/4823112-black-rock-coffee-bar-too-hot-for-my-taste]
* Why New IPO Black Rock Coffee Bar Could Be A GARP Opportunity [https://seekingalpha.com/article/4822749-ipo-black-rock-coffee-bar-garp-opportunity]
* Black Rock Coffee Bar Begins IPO Rollout [https://seekingalpha.com/article/4816058-black-rock-coffee-bar-begins-ipo-rollout]
* Black Rock Coffee Bar soars in its IPO open [https://seekingalpha.com/news/4494408-black-rock-coffee-bar-soars-in-its-ipo-open]
* Coffee chain Black Rock Coffee Bar raises $294M in U.S. IPO [https://seekingalpha.com/news/4494270-black-rock-coffee-bar-announces-pricing-of-initial-public-offering]