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' 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.

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