In a report released today, Bonnie Herzog from Goldman Sachs reiterated a Buy rating on Vita Coco Company, with a price target of $58.00.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Bonnie Herzog’s rating is based on the recent executive order from the White House, which provides relief from reciprocal tariffs for certain agricultural products, including coconut water. This change is expected to significantly reduce Vita Coco’s average tariff rate from 23% to approximately 6%, which is a positive development for the company. Although this reduction in tariffs is not anticipated to materially impact the company’s financial results for FY25 due to existing inventory, it suggests potential upside for FY26 estimates and beyond.
Furthermore, the long-term growth potential for Vita Coco is seen as significant, driven by increased household penetration, distribution gains, price increases, and a strong pipeline of innovation. These factors contribute to the belief that Vita Coco represents a unique investment opportunity within the non-alcoholic and alcoholic beverages sector. Consequently, Bonnie Herzog has reiterated a Buy rating for the company’s stock.
In another report released today, Bank of America Securities also upgraded the stock to a Buy with a $54.00 price target.