In a report released yesterday, Christopher Carey from Wells Fargo maintained a Hold rating on Zevia PBC (ZVIA – Research Report), with a price target of $1.00.
Christopher Carey has given his Hold rating due to a combination of factors including Zevia PBC’s current financial performance and market conditions. Despite the company’s solid gross margins and a clear path to profitability, there are concerns about its revenue visibility and ability to achieve growth. Zevia’s sales have seen a year-over-year decline, and although there is a moderate improvement expected in the second half of the year, the company still faces distribution challenges and the potential for continued losses. Furthermore, the company’s stock has experienced a significant decline, which reflects market skepticism regarding its future performance.
The decision to maintain a Hold rating is also influenced by the company’s valuation in relation to its peers. Carey has adjusted the price target to $1, factoring in a relatively low revenue multiple when compared to industry counterparts. This conservative valuation accounts for the uncertainties surrounding Zevia’s execution in sales, margins, and profitability. Despite the lack of debt, these concerns warrant a neutral stance on the stock, as the potential for either positive or negative developments seems balanced at this point. Carey’s assessment reflects a cautious optimism tempered by the reality of Zevia’s current market position and operational challenges.
According to TipRanks, Carey is a 4-star analyst with an average return of 5.0% and a 54.51% success rate. Carey covers the Consumer Defensive sector, focusing on stocks such as Keurig Dr Pepper, General Mills, and Clorox.
In another report released yesterday, Goldman Sachs also maintained a Hold rating on the stock with a $1.25 price target.
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Zevia PBC (ZVIA) Company Description:
Zevia PBC is a beverage company disrupting the liquid refreshment beverage industry through refreshing, zero-calorie, zero sugar, naturally sweetened beverages that are all Non-GMO Project Verified. It offers a platform of products that include a variety of flavors across Soda, Energy Drinks, Organic Tea, Mixers, Kidz drinks, and Sparkling Water. Its products are distributed across the U.S. and Canada through a network of major retailers in the food, drug, mass, natural, and e-commerce channels.
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