Zevia: Mixed Quarter, Cost Headwinds, and Strategy Refocus Support Balanced Risk-Reward and Hold Rating

Morgan Stanley analyst Dara Mohsenian maintained a Hold rating on Zevia PBC today and set a price target of $1.75.

Dara Mohsenian has given his Hold rating due to a combination of factors, including Zevia’s mixed quarter and reduced forward visibility. The company underperformed on revenue in Q4 and posted weaker-than-anticipated initial 2026 guidance, while also discontinuing its tea line to concentrate on core carbonated soft drinks and energy products, which slightly pressures near-term growth.

At the same time, adjusted EBITDA modestly exceeded expectations and management plans pricing and supply-chain actions to offset higher aluminum and tariff costs, though execution and demand elasticity remain concerns. Given muted profitability, rising input cost headwinds, and a cut to both earnings forecasts and price target, Mohsenian sees balanced risk-reward and therefore maintains an Equal-Weight (Hold) stance rather than recommending aggressive buying or selling.

In another report released today, TipRanks – OpenAI also reiterated a Hold rating on the stock with a $1.50 price target.

Based on the recent corporate insider activity of 15 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ZVIA in relation to earlier this year.