Needham analyst Gerald Pascarelli has maintained their neutral stance on COCO stock, giving a Hold rating on September 25.
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Gerald Pascarelli has given his Hold rating due to a combination of factors that influence the Vita Coco Company’s stock performance. One of the primary reasons is the attractive long-term consumer prospects and the company’s unique position in a market where volume-driven earnings growth is scarce, especially in a challenging staples environment. However, despite these positive aspects, there are concerns that temper the enthusiasm for a more bullish rating.
These concerns include the tough comparisons the company faces, potential tariff risks, and valuation issues. Additionally, after revisiting the financial model, there was a need to adjust the outlook on gross margin, which was initially too optimistic given the uncertainties related to tariff risks and fluctuations in ocean freight costs. These factors collectively contribute to the decision to maintain a Hold rating on the stock.
In another report released on September 25, Morgan Stanley also maintained a Hold rating on the stock with a $41.00 price target.