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Zevia stock price target raised to $6 by BMO Capital on strong earnings

Published 07/08/2025, 13:52
Zevia stock price target raised to $6 by BMO Capital on strong earnings
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Investing.com - BMO Capital raised its price target on Zevia PBC (NYSE:ZVIA) to $6.00 from $5.00 on Thursday, while maintaining an Outperform rating following the company’s quarterly results. The stock, currently trading at $3.44, has shown strong momentum with an 11% gain in the past week. According to InvestingPro analysis, the company maintains a healthy balance sheet with more cash than debt.

The beverage company reported second-quarter revenue of $44.5 million, exceeding the consensus estimate of $41.8 million and marking its first double-digit sales increase in nine quarters.

Zevia achieved positive EBITDA of $0.2 million in the quarter, outperforming consensus expectations by $2.7 million, with the upside primarily driven by stronger gross margins.

The company raised its 2025 EBITDA guidance, now projecting a loss of $7-9 million compared to its previous forecast of an $8-11 million loss, despite facing tariff headwinds.

Zevia maintained its 2025 revenue guidance, though its third-quarter revenue outlook implies a deceleration, followed by a sales decline in the fourth quarter as the company laps Walmart (NYSE:WMT) sell-in comparisons.

In other recent news, Zevia Pbc announced its first profitable quarter as a public company in Q2 2025. The company reported earnings per share of -0.01 USD, surpassing the forecasted -0.05 USD. Revenue also exceeded expectations, reaching 44.5 million USD compared to the anticipated 41.7 million USD. These results mark a significant milestone for Zevia, highlighting its financial progress. The earnings report has caught the attention of analysts, although specific upgrades or downgrades were not mentioned. Investors may find these developments encouraging as they indicate a positive trend in the company’s financial performance. These recent achievements are pivotal for Zevia as it continues to build its market presence.

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

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