BRC Inc.: Brewing A Turnaround With Upside Potential (Rating Upgrade)

BRC Inc. is brewing a turnaround after previous issues. BRC's packaged coffee has shown great momentum on retail shelves, while DTC sales have stabilized. Structural cost actions and coffee deflation improve BRC's margin outlook. I estimate BRCC stock to have a fair value of $1.80, implying a 51% base scenario upside.

There is a good turnaround case to be made for BRC Inc. (BRCC) stock. My previous articles have largely focused on weak and volatile earnings, coffee inflation, challenges in BRC’s energy drink launch, and weak direct-to-consumer momentum, but