WEST Stock Forecast & Price Target

Westrock Coffee Co. has demonstrated significant sales growth, with a 35% increase in 2Q25 sales to approximately $281 million and a target of $1.22 billion in sales for 2026, reflecting an upward adjustment from previous estimates. The Beverage Solutions segment is particularly strong, with a 60.5% sales increase to $263 million and a projected 18% growth driven by robust demand for flavors and extracts. Additionally, both segments have shown improvements in EBITDA margins, with the Beverage Solutions margin expanding by 130 basis points to 9.4% and the Sustainable Sourcing and Traceability margin increasing by 370 basis points to 4.6%, indicating operational efficiency and profitability.

Westrock Coffee's stock outlook is negatively impacted by a significant gross margin compression of approximately 510 basis points to 14.7%, primarily driven by higher coffee commodity costs that are anticipated to be passed onto consumers. Additionally, the company has withdrawn its 2026 adjusted EBITDA forecast, reducing expectations from a range of $130 million to $150 million to $98 million due to uncertainties surrounding key customer demand amid industry consolidation. Furthermore, external risks such as volatility in commodity costs, fluctuating consumer spending, and macroeconomic pressures including rising interest rates and declining consumer confidence further exacerbate the challenges facing Westrock Coffee.