What Happened?
Shares of coconut water company The Vita Coco Company (NASDAQ: COCO) jumped 5.2% in the morning session after an analyst at Wells Fargo raised the company's price target. The firm maintained its "Buy" rating on the stock but increased its price target to $63 from $50. This new target represented a potential upside of about 19% from the stock's price at the time of the report. A significant price target increase from a financial analyst often reflects a more positive outlook on a company's potential for growth and profitability. This can lead to increased investor confidence and drive buying activity, which appeared to be the case for Vita Coco.
After the initial pop the shares cooled down to $54.39, up 4.7% from previous close.
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What Is The Market Telling Us
Vita Coco’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 11 months ago when the stock dropped 12.7% on the news that the company reported weak fourth-quarter 2024 results with full-year revenue guidance that slightly missed expectations. On the other hand, revenue exceeded projections. Adjusted EBITDA also topped expectations, though earnings were in line. Overall, this quarter could have been better, as strong profit growth was overshadowed by a softer full-year revenue outlook.
Vita Coco is up 1.7% since the beginning of the year, and at $54.39 per share, it is trading close to its 52-week high of $54.65 from December 2025. Investors who bought $1,000 worth of Vita Coco’s shares at the IPO in October 2021 would now be looking at an investment worth $4,023.
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