WEST Stock Forecast & Price Target

Westrock Coffee Co has demonstrated impressive financial growth, with Beverage Solutions segment sales surging approximately 60.5% to $263 million, reflecting a robust demand for flavors, extracts, and ingredients, as well as improvements in their k-cup and ground coffee offerings. The company’s adjusted EBITDA margins have also expanded, with Beverage Solutions experiencing a 60 basis point increase to 7.8% and Sustainable Sourcing & Traceability rising by 190 basis points to 6.3%, indicating enhanced operational efficiency. Furthermore, the issuance of $30 million in 5% convertible notes suggests a strategic move to bolster financial capacity, which, combined with forecasts of continued sales growth in both segments, underlines positive momentum for the company's future performance.

Westrock Coffee's outlook is negatively impacted by elevated coffee prices and tariffs, which are expected to exert pressure on its financial results. The company has retracted its previous 2026 adjusted EBITDA guidance, now forecasting only $98 million, down from an earlier estimate of $130 million to $150 million, due to uncertainties related to customer demand amid industry consolidation. Additional risks, including volatility in commodity costs, fluctuating consumer spending, rising interest rates, and weakening consumer confidence, further exacerbate the challenges facing Westrock Coffee's financial performance.