Vita Coco Stock Slips After Analyst Downgrade: Retail Sentiment Sours

Shares of Vita Coco Company Inc. ($COCO) dipped 1.8% on Monday after the coconut water supplier received a downgrade by Stephens, dampening retail sentiment.

Stephens downgraded Vita Coco from ‘Buy’ to ‘Hold’ with a price target of $36, up from $33, Fly.com reported. According to the report, the analyst firm is concerned about stock's "premium" trading multiples, raising the need for better visibility given higher freight costs brought about by tariff uncertainty. However, it believes in long-term prospects for the company.

Sentiment on Stocktwits turned ‘neutral’ from ‘extremely bullish’ a day ago. Message volumes continue to be in the ‘high’ range.

COCO sentiment meter and message volumes on Jan 28 as of 4:15 am ET

Wall Street analysts expect Vita Coco to report $0.07 in earnings per share for its fourth-quarter on revenue of $120.99 million, according to Stocktwits data.

In its latest earnings, the company raised its full-year guidance for net sales and adjusted earnings before interest, taxes, depreciation, and amortization. It predicted Ebitda to be in the range of $80 million to $84 million, Fly.com reported.

Net sales for 2024 were pegged at between $505 million and $515 million, with projected Vita Coco Coconut Water and private label coconut water volume growth expected to be compensated by anticipated declines in its private label coconut oil business. SG&A expenses are expected to be flat to slightly down compared to last year. 

New York, N.Y.-based Vita Coco supplies and distributes coconut water. Its brands include Vita Coco, Runa, and Ever & Ever.

Vita Coco stock is up 2.74% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<