11:30 AM EDT, 08/06/2025 (MT Newswires) -- BellRing Brands ( BRBR ) is facing increased competition in the club channel, driven by new industry players and incremental capacity, Morgan Stanley said in a Wednesday note.

The company is "taking a preemptively cautious stance" on the potential impact of increasing competition on consumption in its largest channel and Morgan Stanley said this is demonstrated by BellRing Brands' ( BRBR ) implied Q4 topline guidance and its "reluctance" to comment on fiscal 2026 expectations.

Morgan Stanley lowered its fiscal 2025 adjusted earnings per share forecast to $2.19 from $2.25 and also cut its fiscal 2026 earnings per share estimate to $2.51 from $2.70.

Shares are expected to be "range-bound at least until the 4Q print," the investment firm said, but added it remains confident over the company's medium-term growth outlook.

Morgan Stanley cut its price target to $58 from $78 and reiterated an overweight rating on the stock.

Price: 37.96, Change: +1.78, Percent Change: +4.92