Piper Sandler has reaffirmed its Overweight rating and $89 price target for The Vita Coco Co. Inc. (NASDAQ: COCO), citing Walmart’s expanding distribution and payment initiatives as key growth drivers.
The firm estimates Walmart’s resets contributed approximately 5 percentage points to Vita Coco’s organic sales growth in the first half of 2026. Outside Walmart, Vita Coco’s sales momentum is running 22% higher in the same period, exceeding the company’s mid-teens long-term growth algorithm. Piper Sandler’s 10% Americas organic sales growth estimate for Vita Coco is considered conservative, reflecting the brand’s expanding shelf presence at Walmart, which ranges from 35% to 85% depending on store formats.
Walmart’s initiatives include the rollout of contactless payment options such as Apple Pay across all U.S. stores by the end of 2026, with expansion to websites, apps, and fuel stations by mid-2027. The retailer reported a 5.0% increase in constant currency net sales for the second quarter, alongside a 17.4% rise in adjusted constant currency EBIT, driven in part by tariff refunds. U.S. comparable sales grew 2.6%, below TD Cowen’s forecast of 3.5%.
Vita Coco’s stock has retraced 22% from recent peaks, though Piper Sandler’s valuation framework remains intact. Walmart’s market capitalization stands at $833 billion, with annual revenue of $735 billion. Other analysts have adjusted Walmart’s price targets: JPMorgan reduced its target to $125 from $137 while maintaining an Overweight rating, BMO Capital lowered its target to $126 from $145, TD Cowen set a $125 target from $150, and Bernstein reiterated an Outperform rating with a $142 target.
