Craig-Hallum bullish on Zevia, initiates with a Buy

As previously reported, Craig-Hallum initiated coverage of Zevia (ZVIA) with a Buy rating and $4 price target but sees significant 4-5-times multi-bag upside as management executes on the profitable growth opportunity. The firm notes Zevia is a leading better-for-you soda brand that is emerging from a 3-year transformation, with several growth tailwinds, a de-risked profitability outlook and impressive management team that is flying under-the-radar and trading at a steep discount to peers despite the impressive turnaround and no debt on the balance sheet. Craig-Hallum sees midyear 2026 as when all the benefits of the last 3 years will come to a head and sees potential for meaningful upward revisions to estimates in the second half of the year and into 2027.