Vita Coco downgraded on moderating growth at William Blair

William Blair downgraded Vita Coco to Market Perform from Outperform without a price target. The analyst believes Vita Coco’s branded measured-channel consumption growth may moderate during coming months due to more challenging comparisons and more moderate contributions from commercial initiatives. In addition, the company could experience higher costs due to the impact recent geopolitical events have had on ocean freight lanes and rates, notably the Red Sea and Suez Canal, the analyst tells investors in a research note. Blair says the combination may limit Vita’s 2024 earnings upside potential and possibly present some bottom-line risk.