Cautious Optimism for Zevia PBC Amid Promising Developments and Market Challenges

Goldman Sachs analyst Bonnie Herzog has maintained their neutral stance on ZVIA stock, giving a Hold rating on May 8.

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 better-than-expected first-quarter results, with net sales declining less than anticipated and gross margins reaching a record high, driven by lower product costs and improved inventory management. However, despite these positive developments, the company’s guidance for the second quarter suggests only modest growth, which raises concerns about the visibility into the macroeconomic and operating environment for the remainder of the year.
While Zevia’s expansion into over 4,300 Walmart stores is a promising development, management will need to navigate a challenging market environment to achieve higher stock ratings. The maintained net sales guidance for the year, implying faster growth in the second half, adds to the uncertainty. Therefore, while there are encouraging signs, the Hold rating reflects the need for cautious optimism as the company works to capitalize on emerging opportunities in a competitive landscape.

In another report released on May 8, Telsey Advisory also maintained a Hold rating on the stock with a $3.00 price target.

ZVIA’s price has also changed dramatically for the past six months – from $1.530 to $3.080, which is a 101.31% increase.