On Monday, 17 November 2025, shares of The Vita Coco Company, Inc. (NASDAQ: COCO) surged to fresh record levels after the White House moved to exempt coconut water from new reciprocal tariffs and Bank of America (BofA) upgraded the stock to Buy with higher 2026 profit estimates. [1]
The rally caps several weeks of strong news flow for the coconut‑water leader, including robust third‑quarter results, raised full‑year guidance, and ongoing share repurchases. [2]
Key takeaways for today (17 November 2025)
- White House Executive Order 14257 update exempts coconut water from U.S. reciprocal tariffs, cutting Vita Coco’s average U.S. tariff rate from ~23% to ~6%. [3]
- Vita Coco says the tariff relief won’t meaningfully change its 2025 results, as most remaining 2025 inventory already incurred tariffs. [4]
- BofA Securities upgrades COCO from Neutral to Buy, lifting its price target to $54 and removing a modeled $37.5 million 2026 tariff headwind. [5]
- COCO stock hit an all‑time high of $48.86 this morning and is up roughly 29% over the past year, with strong revenue growth of ~23% over the last 12 months. [6]
- Q3 2025 net sales jumped 37% to $182 million, driven by a 42% surge in Vita Coco Coconut Water, and full‑year 2025 net‑sales guidance was raised to $580–595 million. [7]
COCO stock price today: rally extends to record territory
As of late trading on 17 November, COCO is changing hands around $47–48 after touching an intraday high of $50.45, extending the morning’s new record of $48.86 reported by Investing.com. [8]
Key valuation snapshots from InvestingPro and today’s trading: [9]
- 1‑year total return: ~28.9%
- P/E ratio: ~38x
- PEG ratio: ~2.4
- LTM revenue growth: ~23%
Several commentators note that the stock now screens as “somewhat overvalued” on traditional multiples, but the market is clearly rewarding Vita Coco’s combination of category leadership, high growth and a cleaner tariff outlook. [10]
Tariff relief: what exactly changed for Vita Coco?
The central catalyst today is a modification to U.S. reciprocal tariffs on agricultural products under an updated Annex II to Executive Order 14257.
According to the company’s GlobeNewswire statement (hosted on Nasdaq and summarized across several financial outlets): [11]
- On Friday, 14 November 2025, the White House announced relief from reciprocal tariffs on certain agricultural goods.
- The updated Annex II explicitly includes the tariff codes for coconut water products, which make up the bulk of Vita Coco’s portfolio.
- Vita Coco believes its coconut‑water products are now exempt from reciprocal tariffs as of 13 November 2025.
- However, the 40% ad‑valorem duty on imports from Brazil remains in place for now.
- Based on the current sourcing mix, the company estimates its average U.S. tariff rate will drop from about 23% to roughly 6%.
Reuters, via a brief note on TradingView, echoed the company’s view that the tariff relief sharply lowers the average duty burden on Vita Coco’s U.S. imports, while reiterating management’s guidance that there should be no material impact on reported 2025 earnings. [12]
In practical terms, the change removes a major future cost overhang tied to U.S. trade policy – especially for 2026 and beyond – even if the benefits will only start to show up in reported margins once pre‑tariffed inventory is sold through.
Company response: welcome relief, but 2025 guidance unchanged
In its official statement, Vita Coco: [13]
- Welcomed the policy shift, thanking the administration for recognizing that coconut water is a natural resource not commonly grown in the United States.
- Emphasized that lower tariffs should help keep coconut water affordable for U.S. consumers, even as demand continues to rise.
- Stressed that, because inventory expected to be sold in the rest of 2025 already incurred tariffs, the company does not expect the relief to have a material impact on 2025 financial results.
StockTitan’s AI summary, which digests the same press release, highlights three near‑term watchpoints for investors: sourcing mix shifts (especially exposure to Brazil), unit cost trends as new inventory flows through, and future disclosures quantifying run‑rate margin improvements once older inventory clears. [14]
Vita Coco also filed an 8‑K “Material Event” with the SEC on 17 November related to the tariff development, underscoring its regulatory significance. [15]
Wall Street reaction: BofA upgrades COCO to Buy
The other big piece of today’s news is BofA Securities’ rating change. In a note published Monday morning, the firm: [16]
- Upgraded The Vita Coco Co. Inc (NASDAQ: COCO) from Neutral to Buy.
- Raised its price target from $48 to $54, implying about 23% upside from a reference price of $43.85 when the note was written.
- Explicitly cited the tariff exemption as the key catalyst, removing what it had modeled as a $37.5 million 2026 tariff headwind.
- Lifted its 2026 adjusted EBITDA estimate to approximately $128.1 million (vs. a trailing‑twelve‑month EBITDA around $77 million), reflecting higher confidence in mid‑term profitability.
BofA also reiterated that tariffs had been the main reason for its earlier Neutral rating. With that uncertainty sharply reduced, the firm now leans into Vita Coco’s strong top‑line momentum and balance‑sheet strength (more cash than debt and a current ratio around 3.4, per InvestingPro data). [17]
COCO hits all‑time high as investors digest the news
Shortly after the tariff statement and analyst upgrade hit the wires, COCO: [18]
- Spiked to a new all‑time high of $48.86 in morning trade.
- Extended its 12‑month gain to roughly 29%.
- Traded on strong volume as both retail and institutional interest picked up.
Investing.com notes that COCO now trades at around 38x earnings with a PEG ratio near 2.4, and characterizes the shares as somewhat rich on pure valuation metrics – but supported by a “GREAT” financial‑health score and compelling revenue growth. [19]
German outlet wallstreetONLINE framed the move in a longer‑term context, pointing out that Vita Coco shares are more than 200% above their IPO level and still seen as having meaningful growth potential, with roughly 23% upside from European price targets cited in that article. [20]
Fundamentals still matter: a quick look at Q3 2025
Today’s price action doesn’t happen in a vacuum. It builds on a strong third‑quarter 2025 earnings print released on 29 October. According to SEC‑based summaries and trading‑desk reports: [21]
- Net sales: $182 million, +37% year‑over‑year, driven by
- +42% growth in Vita Coco Coconut Water, and
- solid contributions from newer products like Vita Coco Treats.
- Net income: $24 million, up $5 million versus the prior‑year quarter.
- Adjusted EBITDA: $32 million, an increase of $9 million year‑on‑year.
- Year‑to‑date 2025:
- Net sales up 24% to $482 million.
- Coconut water sales up 31% vs. the first nine months of 2024.
Management also raised its full‑year 2025 guidance, now expecting: [22]
- Net sales: $580–595 million.
- Gross margin: roughly 36%.
- Adjusted EBITDA: $90–95 million.
Vita Coco finished Q3 with no debt and about $204 million in cash and equivalents, and it has been steadily returning capital to shareholders via buybacks. An 8‑K filing and Simply Wall St analysis indicate that the company has already repurchased around 873,000 shares under its existing program, with about $42 million still available. [23]
Category leadership and long‑term growth story
Beyond the latest quarter, Vita Coco’s bull case remains heavily tied to coconut water’s structural growth and the company’s category dominance.
A review of the company’s Q2 2025 investor slides shows that: [24]
- The coconut water category grew about 12% in volume and 15.5% in dollar sales over the prior year period, outpacing many other beverage segments.
- Vita Coco held ~44.5% U.S. market share in coconut water in the 13 weeks ended 29 June 2025, reinforcing its position as the clear category leader.
At the same time, Vita Coco is diversifying its portfolio with: [25]
- PWR LIFT, a protein‑infused water.
- Ever & Ever, water in aluminum cans.
- Vita Coco Treats, launched in 2024 and responsible for a 182% jump in the “other” category in Q3, according to German coverage.
These extensions help broaden the company’s addressable market while still reinforcing its “better‑for‑you beverage platform” positioning.
What today’s tariff relief could mean for margins
While the company insists today’s change won’t materially move 2025 results, the economics over a multi‑year horizon look more significant.
From the numbers disclosed: [26]
- Average U.S. tariffs on Vita Coco’s products fall from around 23% to roughly 6%, a 17‑percentage‑point reduction on eligible shipments.
- BofA’s decision to add $37.5 million back into 2026 adjusted EBITDA modeling suggests that, under its assumptions, tariffs had been a sizable drag on future profitability projections.
How much of that benefit ultimately appears in margins vs. being competed away or used to fund marketing will depend on:
- Sourcing mix – especially the share of imports still exposed to the 40% Brazilian duty.
- Pricing decisions – whether Vita Coco holds prices, trims MSRP to gain share, or reinvests some savings into promotions.
- Category dynamics – if competitors also see tariff relief, the net advantage may be more about improved category economics than company‑specific windfalls.
For now, the market seems to be treating the news as the removal of a major overhang rather than a windfall profit event – consistent with Vita Coco’s own “no material impact in 2025” guidance.
Risks and questions investors should keep in mind
Despite the upbeat tape, several risks and open questions remain: [27]
- Competition from beverage giants: Coca‑Cola, PepsiCo, and Keurig Dr Pepper all have competing hydration and coconut‑water offerings. Deep‑pocketed rivals could pressure pricing or shelf space.
- Input and climate risk: Coconut‑based supply chains are vulnerable to weather events and climate change, which can disrupt yields and logistics.
- Valuation risk: At nearly 38x earnings and after a 200%+ run since IPO, any slowdown in category growth or margin expansion could trigger sharp multiple compression. [28]
- Tariff and policy uncertainty: While today’s Executive Order is positive, future administrations or trade disputes could again change the tariff landscape.
- Execution on innovation: Products like Vita Coco Treats and PWR LIFT need to scale profitably without diluting brand equity.
What to watch next
Looking ahead, investors and traders following COCO may want to track:
- Upcoming quarterly reports (Q4 2025 and Q1 2026)
- Evidence of lower landed costs and gross‑margin uplift as new, lower‑tariff inventory flows through.
- Any updates to 2026 guidance that incorporate the new tariff environment. [29]
- Category data
- Nielsen/IRI scan data on coconut‑water volume and dollar growth.
- Vita Coco’s market‑share trajectory versus emerging competitors. [30]
- Capital allocation
- Pace of share repurchases under the remaining $42 million authorization.
- Potential for dividends or M&A as the balance sheet remains debt‑free with substantial cash. [31]
Quick FAQ: COCO on 17 November 2025
Why is Vita Coco (COCO) stock up today?
Because the White House exempted coconut water from certain reciprocal tariffs, sharply cutting Vita Coco’s expected duty burden, and BofA upgraded the stock to Buy with a higher price target. [32]
Does tariff relief change Vita Coco’s 2025 outlook?
Management says no material impact is expected for 2025 results, since inventory selling through this year already incurred tariffs. The bigger impact is likely from 2026 onward as new inventory arrives under lower tariff rates. [33]
Is COCO a buy after today’s rally?
Analysts like BofA argue the risk‑reward is still attractive at current levels, but the stock now trades at a premium valuation and remains sensitive to category growth, competition, and future policy moves. Every investor should assess their own risk tolerance and do independent research; this article is not investment advice. [34]
This article is for informational purposes only and does not constitute financial, investment, or trading advice. Always do your own research or consult a licensed financial professional before making investment decisions.
References
1. www.nasdaq.com, 2. www.tradingview.com, 3. www.nasdaq.com, 4. www.nasdaq.com, 5. www.investing.com, 6. www.investing.com, 7. www.tradingview.com, 8. www.investing.com, 9. www.investing.com, 10. www.investing.com, 11. www.nasdaq.com, 12. www.tradingview.com, 13. www.nasdaq.com, 14. www.stocktitan.net, 15. www.stocktitan.net, 16. www.investing.com, 17. www.investing.com, 18. www.investing.com, 19. www.investing.com, 20. www.wallstreet-online.de, 21. www.tradingview.com, 22. www.tradingview.com, 23. www.tradingview.com, 24. www.investing.com, 25. www.tradingview.com, 26. www.nasdaq.com, 27. www.wallstreet-online.de, 28. www.investing.com, 29. www.tradingview.com, 30. www.investing.com, 31. www.tradingview.com, 32. www.nasdaq.com, 33. www.nasdaq.com, 34. www.investing.com
