Vita Coco Expected To See Gross Margin Expansion In FY23 Amid Moderating Freight Costs, Forecasts Analyst
Portfolio Pulse from Lekha Gupta
Stephens & Co analyst Jim Salera initiated coverage on The Vita Coco Co Inc (NASDAQ:COCO) at Equal-Weight with a price target of $30. Salera is bullish on COCO's leadership in the coconut water category and its asset-light global supply chain. The analyst expects a ~900 bps gross margin expansion in FY23 due to moderating ocean freight costs.
June 23, 2023 | 7:04 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Stephens & Co analyst Jim Salera initiated coverage on The Vita Coco Co Inc (NASDAQ:COCO) at Equal-Weight with a price target of $30. The analyst expects a ~900 bps gross margin expansion in FY23 due to moderating ocean freight costs.
The analyst's initiation of coverage on COCO with a price target of $30 and the expectation of gross margin expansion in FY23 due to moderating ocean freight costs is positive news for the company. However, the stock is currently trading lower by 1.99% at $28.57, indicating that the market may have already priced in this information or other factors are influencing the stock price. Therefore, the short-term impact on the stock price is neutral.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100