Goldman Sachs analyst Bonnie Herzog maintained a Hold rating on Zevia PBC on August 6 and set a price target of $3.50.
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Bonnie Herzog has given her Hold rating due to a combination of factors surrounding Zevia PBC’s recent performance and future outlook. The company reported stronger-than-expected results for Q2, with significant growth in net sales and volume, which led to better-than-anticipated gross margins and positive adjusted EBITDA for the first time since its IPO. Despite these positive results, management has opted to maintain its net sales guidance for the year, reflecting a cautious stance given the uncertain macroeconomic environment and the expected impact of lapping the initial channel fill of Walmart in Q4.
While the company has shown promising signs of improvement, such as raising its FY25 adjusted EBITDA guidance, the overall market conditions and management’s conservative guidance suggest a balanced outlook. The limited upside potential, as indicated by the 12-month price target being close to the current stock price, further supports the Hold rating. This cautious approach acknowledges both the achievements and the challenges faced by Zevia PBC, making it prudent for investors to maintain their positions while monitoring future developments.
ZVIA’s price has also changed slightly for the past six months – from $3.750 to $3.440, which is a -8.27% drop .