Westrock Coffee up after Truist initiates coverage with 'buy' rating

Westrock Coffee

07/10/2024 13:45

** Shares of coffee supplier Westrock Coffee Company
 WEST.O  up ~1% at $6 premarket
    ** Brokerage Truist Securities initiates coverage on WEST
with "buy" rating and PT of $10
    ** Says company is well-positioned to expand margins due to
a new facility in Conway, Arkansas, specializing in coffee-based
ready-to-drink (RTD) beverage manufacturing
    ** Notes RTD beverages have surged in retail sales due to
more flavor and variety offerings along with convenience
    ** Believes co has untapped cross-selling opportunities as
customers are using only one or two of the five main
capabilities of the Conway plant, including canning, extracts,
K-cups 
    ** Blames the underperformance of the stock on uneven
results of its major coffee & tea business and sees co's plans
to install three new lines in the Conway plant in FY25 could
offset this volatility
    ** Up to Friday's close, stock has fallen ~42% YTD

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))