Zevia PBC (ZVIA – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Dara Mohsenian from Morgan Stanley maintained a Hold rating on the stock and has a $2.75 price target.
Dara Mohsenian has given his Hold rating due to a combination of factors affecting Zevia PBC’s future performance. The company’s Q4 results were solid, with revenue slightly above consensus and strong gross margins. However, the guidance for 2025 was below expectations, indicating limited visibility on Zevia’s ability to leverage the shift towards healthier soda options.
Despite the potential for long-term growth through increased marketing, innovation, and distribution expansion, Zevia faces challenges such as distribution losses in mass/club channels and the discontinuation of certain product lines. These factors contribute to a weaker than expected sales and EBITDA forecast for 2025. While there is a larger long-term market opportunity, the current guidance reflects uncertainties, leading to a Hold rating.
In another report released on February 27, Telsey Advisory also maintained a Hold rating on the stock with a $3.00 price target.
Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ZVIA in relation to earlier this year.
Questions or Comments about the article? Write to editor@tipranks.com