Why Are Vita Coco Shares Skyrocketing Today? - Vita Coco (NASDAQ:COCO)

Wells Fargo analyst Chris Carey initiated coverage on Vita Coco Company Inc COCO with an Overweight rating and $18 price target, implying a 1% upside.
The analyst sees a lot to like about Vita Coco, the leading brand in a fast-growth functional beverage category with a distribution runway, competitive moats, a mix margin story, and experienced leadership.
Carey added that share gains are accelerating behind building strength in both distribution and velocity, with valuation offering an appropriate cushion.
Credit Suisse analyst Kaumil Gajrawala initiated coverage of Vita Coco with an Outperform rating and $18 price target.
The analyst believed Vita Coco's position as a niche better-for-you beverage platform offered sufficient top-line strength and bottom-line earnings power to warrant potential valuation upside.
Evercore ISI analyst Robert Ottenstein initiated coverage of Vita Coco with an Outperform rating and $18 price target.
Ottenstein said Vita Coco has the potential to grow at twice the rate of the North American non-alcoholic ready-to-drink beverage market as its rides the "two enduring waves" of wellness and the "demographic engine" of Hispanic and Asian-American population growth.
BofA analyst Bryan Spillane initiated coverage of the company with a Buy rating and $18 price target, forecasting a 16% CAGR over the next three years, with most of the growth coming from distribution gains, product innovation, and new packaging.
Vita Coco's "robust" supply chain is difficult for competitors to replicate, providing the company with a "differentiated advantage," Spillane notes.
Piper Sandler analyst Michael Lavery initiated coverage of Vita Coco with an Overweight rating and $17 price target, implying a 4% downside. The company has had "robust recent growth," primarily driven by coconut water, a category that has had low double-digit sales growth over the last four quarters.
Goldman Sachs analyst Bonnie Herzog initiated coverage of Vita Coco with a Buy rating and $22 price target, suggesting a 23.5% upside.
Bonnie said the company is an innovator within the consumer packaged goods universe, saying it essentially scaled the coconut water category in the U.S. and has a "rich" pipeline of coconut water products that fuse functional benefits with authentic, better-for-you ingredients.
Herzog sees a "long runway of attractive topline growth" for Vita Coco.
Price Action: COCO shares are trading higher by 23.03% at $17.84 on the last check Monday.

Market News and Data brought to you by Benzinga APIs