Telsey reiterates Outperform rating on Westrock Coffee stock after strong Q2

Published 08/08/2025, 11:06
Telsey reiterates Outperform rating on Westrock Coffee stock after strong Q2

Investing.com - Telsey Advisory Group maintained its Outperform rating and $10.00 price target on Westrock (NYSE:WRK) Coffee Co. (NASDAQ:WEST) following the company’s second-quarter 2025 results. According to InvestingPro data, the stock currently trades below analysts’ consensus target range of $10-13, despite showing weak overall financial health metrics.

Westrock Coffee reported sales growth of 34.8% to $280.9 million in the second quarter, significantly exceeding analyst expectations of approximately $238 million. The company’s adjusted EBITDA reached $15.3 million, also surpassing forecasts of around $11 million.

The strong performance was primarily driven by new production at the company’s Conway, Arkansas facility, which boosted growth across Westrock’s core coffee and tea businesses. Single-serve cup volume increased by 21.1%, while the flavors, extracts, and ingredients segment grew by 14%.

Westrock Coffee maintained its full-year 2025 adjusted EBITDA guidance of $60 million to $73 million. The company also reaffirmed its 2026 adjusted EBITDA forecast of $130 million to $150 million, which aligns with analyst consensus estimates.

Telsey noted that these results "continue to reflect gains from the new production at Conway, AR," highlighting the importance of this facility to Westrock’s ongoing growth strategy.

In other recent news, Westrock Coffee Co reported its Q2 2025 earnings, showcasing a notable increase in revenue despite a larger-than-anticipated loss per share. The company achieved revenue of $280.86 million, surpassing analysts’ expectations of $238.34 million. However, the earnings per share (EPS) was -$0.2038, which was below the forecasted -$0.145. This mixed financial performance was reflected in the company’s stock, which experienced a decline. Despite the revenue growth, the larger-than-expected loss per share impacted investor sentiment. Analysts had projected a smaller loss, which contributed to the stock’s reaction following the earnings announcement. These developments are part of the recent updates concerning Westrock Coffee Co.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.