Balanced Hold Rating on Vita Coco: Strong Performance Meets Fair Valuation

William Blair analyst Jon Andersen has maintained their neutral stance on COCO stock, giving a Hold rating on April 15.

Jon Andersen’s rating is based on a combination of factors that reflect both positive performance and cautious optimism. The Vita Coco Company exceeded expectations with its first-quarter EBITDA, surpassing both internal and consensus estimates, which indicates strong earnings quality. Sales and gross margins were higher than anticipated, and the operating expense ratio was better than forecasted, demonstrating efficient cost management.
Despite these positive indicators, Andersen maintains a Hold rating, possibly due to the company’s current valuation. The enterprise value is approximately 19 times the 2025 EBITDA estimate, which might suggest that the stock is fairly valued at this point. Additionally, while management has reaffirmed its full-year sales and EBITDA guidance, the neutral to higher estimate bias indicates that there may not be significant upside potential in the near term. Thus, Andersen’s Hold rating reflects a balanced view, acknowledging the company’s solid performance while considering its valuation and future growth prospects.