Vita Coco
The stock did have a brief spike higher in early November on strong volume as the company was rated positively by Wall Street analysts. Currently, Vita Coco is covered by 8 Wall Street analysts and all 8 have a Buy rating on the stock. Currently, they have a consensus price target of $18.9 which implies a 35% upside.
IPO Details
The company sold 2.5 million shares and was able to raise $37.5 million. The company opened at $15 which was a disappointment considering that it had traded between $18 and $21 in its pre-IPO period. Insiders sold another 9 million shares, and the stock's float is expected to be around 55 million shares.
Currently, it has a valuation of around $800 million with sales of $334 million and 43% earnings growth and 15% revenue growth on a full-year basis. The bullish case on the stock rests on the belief that its category of healthy drinks will continue to expand, and Vita Coco will remain a leader.
Vita Coco sells coconut water and other healthy beverages. In its last earnings report, the company reported revenue of $115 million, a 32% increase from last year. Net income was $18 million, a 72% increase from last year. For the first three quarters of the year, Vita Coco has generated $292 million in revenue, a 22% increase and gross profit of $91.6 million.
The company's valuation only makes sense if Vita Coco can continue growing. However, it's a positive sign that the company is positive on a free cash flow basis. Many are bullish on the stock as it's growing at twice the overall beverage market and the product is popular in the Hispanic and Asian-American demos which are also the fastest-growing parts of the population. Further, the company's brand awareness is in its early stages of growth and it continues to make distribution deals.
