Krispy Kreme, Inc. (DNUT) stock plummeted 5.33% in the pre-market session on Wednesday, following disappointing earnings guidance for the year 2025. Several analysts reacted to the news by slashing price targets and downgrading the stock.
Morgan Stanley downgraded Krispy Kreme to Underweight from Equal-Weight and significantly lowered its price target to $6 from $12. The analysts cited "materially worse 2025 guidance" than expected and raised concerns about long-term demand sustainability and structural challenges in the U.S. market. They pointed to declining demand, a shift towards value offerings over premium-priced items, and cash burn challenges as key issues for the company.
Other analysts also lowered their price targets, with Truist Securities cutting its target to $12 from $15, and Piper Sandler lowering its target to $12 from $18, although the latter firm maintained an Overweight rating on the stock.