Zevia's Struggles With Competition And Execution: Analyst Revises Sales And Profit Estimates Downward
Portfolio Pulse from Nabaparna Bhattacharya
Telsey Advisory Group analyst Dana Telsey has downgraded Zevia PBC (NYSE:ZVIA) to Market Perform from Outperform, lowering the price target to $4 from $5. The analyst cites a competitive macro environment and company-specific operational issues as reasons for the downgrade. Telsey also revised sales and profit estimates downward for 2Q23 and 2023. Despite these challenges, Zevia is expected to gain market share from its brand refresh initiatives in 2023.
July 25, 2023 | 7:19 pm
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Zevia has been downgraded by Telsey Advisory Group due to a competitive environment and operational issues. The company's sales and profit estimates have been revised downward, which could negatively impact its stock price.
The downgrade by Telsey Advisory Group, coupled with the downward revision of sales and profit estimates, indicates a negative outlook for Zevia. This could lead to a decrease in investor confidence, potentially driving the stock price down in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100