COCO - VitaCoco shares rise as BofA upgrade calls out stabilizing freight costs

VitaCoco ( NASDAQ: COCO ) shares were fueled higher on Friday by a fresh upgrade at Bank of America that suggested transportation costs are coming under control.

In a note to clients on Friday, equity analyst Bryan Spillane explained that the company is well positioned given the likelihood that inflationary impacts on ocean freight are abating. He pointed to the Drewry World Container Index trending 32% off its all-time highs as a key signal to this point.

“We think shares of COCO are well positioned to outperform in the case of a recession given the company has taken minimal pricing this year making its products more attractive to “price conscious” consumers,” he added.

Spillane upgraded the stock to “Buy” from “Neutral” and raised his price target $12 from a prior $10. Shares of Vitacoco ( COCO ) rose nearly 6% in Friday’s premarket hours.

Read more on the company’s recent collaboration with Diageo .

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