JPMorgan Chase says shares of Dutch Bros. look attractive after tumbling 42% this year. Analyst John Ivankoe upgraded the coffee chain to overweight, saying in a note to clients that the company has “shown permanence over time as differentiated beverages drive both the consumer and investment proposition.” To be sure, Dutch Bros. is not immune to consumers cutting back on spending if a downturn comes. He noted that the company’s drive-through and pickup window continue to attract many younger clients. “Near-in operational efficiencies and additional pricing should allow a return to margin growth in the current 4Q22 and beyond,” Ivankoe wrote. “We note that the forecast capital intensity has gone up since initiation, and bank financing is being used to fund the negative FCF business.” Along with the upgrade, he trimmed the bank’s price target on the stock to $38 a share, which still represents nearly 29% upside from Tuesday’s close. — CNBC’s Michael Bloom contributed reporting
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