Zevia shares surge 14.29% after-hours after Craig-Hallum initiates Buy rating with $4 price target.

Zevia PBC (ZVIA) surged 14.29% in after-hours trading following Craig-Hallum’s initiation of coverage with a Buy rating and a $4 price target, signaling significant growth potential. The firm highlighted a potential 4-5 times valuation multiple, suggesting strong investor optimism amid recent operational challenges. While earlier news, including supply chain issues and insider selling, had pressured the stock, the upgrade from Craig-Hallum appears to have overshadowed those concerns, driving immediate post-market enthusiasm. The rating reflects renewed confidence in Zevia’s strategic direction, though execution risks remain given prior earnings disappointments. This move aligns with the stock’s sharp reversal from a July 26 low, where supply chain problems had driven a 26% decline. Analyst activity, including prior Overweight and Outperform ratings, had previously failed to sustain momentum, but Craig-Hallum’s entry into coverage may indicate a turning point in market sentiment.