COCO - Vita Coco slides to new post-IPO low after BofA pulls bull rating
Vita Coco Company (COCO -9.5%) fell on Monday after Bank of America downgraded the beverage stock to a Neutral rating after having it slotted at Buy. The firm warned on potential downside to Vita Coco's (NASDAQ:COCO) FY22 guidance, especially during the second half of the year as rising transportation costs factor into profitability. Analyst Bryan Spillane on COCO: "With cost per equivalent case up +15% year over year during 4Q21 due to higher-than-expected transportation costs (includes ocean freight and domestic logistics), we see potential downside to COCO’s FY22 guidance, especially during the second half. While many companies in our coverage universe are also contending with higher input costs, we believe investors will be less lenient toward COCO given its exposure to ocean freight where costs have doubled over the past year." Looking further ahead, BofA remained optimistic about COCO's topline potential as the company continues to successfully revitalize the coconut
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Vita Coco slides to new post-IPO low after BofA pulls bull rating