DA Davidson analyst Michael Baker says BRC Inc. continues to outperform growth rates in the sector, growing its packaged coffee business at 21.1% through mid-June. Monthly spending data from Nielsen IQ Industry show wide packaged coffee sales were down 3.4% through mid-June, in line with down 3.3% in May, while ready-to-drink coffee sales were down 3.2%, an acceleration from May’s 5.2% decline, the analyst tells investors in a research note. While unit volumes are down year-over-year for both packaged coffee and ready-to-drink, BRC is seeing above average trends in both categories, says the firm. It reiterates a Buy rating on the shares with a $7 price target. The company is growing and likely taking share, DA adds. The stock in midday trading is up 7% to $6.97.
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