WEST Stock Forecast & Price Target

Westrock Coffee is well-positioned to capitalize on the continued growth of the coffee industry, particularly in high-margin areas such as single-serve and cold-brew products. The completion of its Conway facility and improving cost performance are expected to drive strong EBITDA growth through 2027, with an improving balance sheet and potential for share repurchases. While the pending industry consolidation and elevated coffee prices present temporary headwinds, the company's long-term growth outlook remains strong, supported by its expanding capabilities, digitally-traceable products, and opportunities outside of the US market. Risks to this outlook include potential commodity costs, demand uncertainty related to customer mergers, and supply chain disruptions. As such, our 'Buy' rating on Westrock Coffee remains, with a target price of $7 based on an 8x EV/EBITDA multiple of our FY27 estimate.

Westrock Coffee is set for growth in the long-term with its diverse portfolio of coffee, tea, flavors and ingredients products, and its efficient supply chain management and distribution services. The recent 4Q25 results demonstrated impressive sales growth of 48.3%, strong EBITDA growth of 29%-44% for 2026, and the completion of product development and commercialization processes at its Conway facility for new product lines to capture market share in the booming RTD segment. However, the loss of sales and profits from JDE Peet's acquisition may slightly hinder growth in the near-term, but the company's focus on innovation, expanding margins, and catering to changing consumer preferences make Westrock a favorable long-term investment.