© Reuters. Stifel bullish on Dutch Bros (BROS) following leadership changes

Stifel upgraded Dutch Bros Inc. (NYSE:) to a Buy rating (From Hold) and raised their 12-month price target on the stock to $35.00 (From $32.00) following leadership changes and a shift in market strategy.

Before the ICR Conference, Dutch Bros revealed leadership changes. Sumitro Ghosh was named as the company’s the new President of Operations, Jess Elmquist will take on the role of Chief People Officer, and Joshua Guenser is BROS new CFO, succeeding Charley Jemley who retired in February. Brian Maxwell shifts from COO to the position of Vice Chairman and reports to Co-founder and Executive Chairman Trav Boersma.

“We commend Trav and Christine for working to build the team and a transition plan to ensure the company has a high probability of achieving its long-term targets.” Wrote analysts at Stifel in a note.

Stifel added, “Any transition carries some risk, so investors should monitor management turnover and the success of key initiatives, but we are encouraged by the proactive moves.”

In March 2023, the company adjusted the points awarded per purchase in its Dutch Rewards program, which constitutes around 65% of total transactions. The savings from this modification were redirected towards targeted offers for members and promotions aimed at encouraging additional purchases.

In June 2023, new CMO Tana Davila aims to boost brand awareness by using more paid media and expanding community-building activities, like sponsoring events such as the Big 12 Championship in Texas.

Additionally, the company is engaging in more community-building activities, similar to the approaches taken by Raising Cane’s and Chick-fil-A.

Shares of BROS are up 0.43% in mid-day trading on Tuesday.