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Investing.com - Telsey Advisory Group raised its price target on Zevia PBC (NYSE:ZVIA) to $6.00 from $5.00 on Thursday, while maintaining an Outperform rating on the beverage company’s stock. The new target represents significant upside potential for the company, which currently has a market capitalization of $201 million and has seen its stock surge nearly 193% over the past year.
The price target increase follows a meeting with Zevia’s management team that enhanced Telsey’s confidence in the company’s multi-year growth trajectory. The firm cited favorable macro trends, including consumer preference for natural, zero sugar, and zero color products, as key drivers supporting Zevia’s continued positive sales growth. According to InvestingPro data, the company generated revenues of $158.37 million in the last twelve months, though it remains unprofitable with a diluted EPS of -$0.23.
Telsey highlighted several company-specific initiatives expected to fuel growth, including expanded distribution across retailers such as Albertsons, Costco, CVS, Kroger, Sprouts, Whole Foods, Walgreens, and Walmart. The firm also noted Zevia’s ongoing expansion of its direct-store-delivery model to grow single-serve products and cater to convenience and food service channels.
Additional growth drivers include product innovation through new flavors and variety packs, along with effective marketing spend to win new households. Telsey pointed to Zevia’s plans to renew focus on energy drinks in late 2026-2027 and raise capital to boost growth through marketing investments, acquisitions, joint ventures, and strategic partnerships.
The new $6 price target represents an enterprise value to sales multiple of approximately 2.0x applied to Telsey’s 2026 sales forecast of $174 million for Zevia. InvestingPro analysis suggests the stock is currently fairly valued, with additional insights and a comprehensive Pro Research Report available for subscribers looking to dive deeper into Zevia’s financial health and growth prospects.
In other recent news, Zevia PBC reported its first profitable quarter as a public company in the second quarter of 2025. The company achieved earnings per share of -0.01 USD, which was significantly better than the forecasted -0.05 USD. Zevia’s revenue for the quarter was 44.5 million USD, surpassing the consensus estimate of 41.8 million USD. This marks the first time in nine quarters that the company has seen a double-digit sales increase. Following these strong earnings results, BMO Capital raised its price target for Zevia to $6.00 from $5.00, maintaining an Outperform rating. These developments highlight a positive trend for the company, with analysts noting the improved financial performance. The recent earnings call emphasized the unexpected profit and revenue growth, which has caught the attention of investors and analysts alike.
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