Vita Coco (COCO) is well-positioned to deliver double-digit top line growth over the next few years, supported by expanding US household penetration, Oppenheimer said in a Thursday note.

The firm noted Vita Coco is the leader in US coconut water category and holds strong market share positions in key international markets, including the UK and Germany, with coconut water accounting for 96% of 2025 revenue.

Growth will be driven by increased US household penetration, distribution gains, international expansion, and product innovation, Oppenheimer said.

The firm added Vita Coco's valuation has become more accommodative following a 31% pullback since mid-June, creating an attractive entry point.

Oppenheimer initiated coverage of Vita Coco with an outperform rating and a $70 price target.

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