In a report released yesterday, Dara Mohsenian from Morgan Stanley maintained a Hold rating on Zevia PBC, with a price target of $2.70.
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Dara Mohsenian has given his Hold rating due to a combination of factors surrounding Zevia PBC’s recent financial performance and future outlook. The company reported better-than-expected results for the second quarter, with notable improvements in revenue and gross profit, as well as achieving its first profitable quarter since going public. However, despite these positive developments, the full-year guidance remains largely unchanged, with only a slight improvement in EBITDA expectations.
While Zevia has expanded its cost savings program and improved its gross margin, the visibility on whether the company can fully capitalize on the growing trend towards healthier soda options remains limited. The upcoming quarters are expected to involve increased marketing investments and higher promotional activities, which may impact profitability. Consequently, while there is optimism about Zevia’s progress, the uncertainties surrounding its ability to leverage the broader market trends justify a Hold rating.
In another report released on August 6, Goldman Sachs also maintained a Hold rating on the stock with a $3.50 price target.
ZVIA’s price has also changed slightly for the past six months – from $3.300 to $3.120, which is a -5.45% drop .