Telsey Advisory Group Reaffirms Outperform Rating and $10 Price Target for Westrock Coffee

Financing Announcement: Willis Lease Finance Corporation's subsidiary, WEST, plans to offer $337.4 million in Series A Fixed Rate Notes and $55.5 million in Series B Fixed Rate Notes, secured by a portfolio of 47 aircraft engines and 2 airframes.

Use of Proceeds: The proceeds from the Notes will cover fees related to the offering, establish reserve accounts, and pay WLFC for the acquisition of aircraft engines and airframes over a 270-day period.

Regulatory Compliance: The Notes will not be registered under the Securities Act and are offered only to qualified institutional buyers and non-U.S. persons, adhering to specific regulatory exemptions.

Forward-Looking Statements: The announcement includes forward-looking statements that carry risks and uncertainties, with actual results potentially differing due to various market and operational factors.

Insider Buying at Butterfly Network: Larry Robbins purchased 2,800,000 shares of Butterfly Network (BFLY) for $6.78M at $2.42 each, seeing a 27.9% gain when shares peaked at $3.10 on Monday, marking his first buy in a year.

Insider Buying at Westrock Coffee: Director Robert Patrick Kruczek bought 150,000 shares of Westrock Coffee for $620,950 at $4.14 each, following a previous purchase of $1.02M shares at $6.82 each within the last year, while the stock is down 0.7% on Monday.

Management Performance: Westrock Coffee Company reported record-breaking quarterly results for Q3 2025, with a 14% increase in Adjusted EBITDA to $26.2 million, driven by new customer volume and effective cost management. CEO Scott Ford emphasized the company's goal to be a leading supplier in the beverage industry and highlighted significant production advancements at their Conway facility.

Financial Results: The company experienced a 61% increase in net sales compared to Q3 2024, although it reported a net loss of $19.1 million due to ongoing investments in the Conway facility. Consolidated Adjusted EBITDA rose 125% year-over-year, with strong performance in both Beverage Solutions and SS&T segments.

Outlook and Guidance: For 2025, Westrock updated its guidance for Consolidated Adjusted EBITDA to between $60 million and $65 million, while segment-specific expectations were also provided. However, uncertainty looms for 2026 due to a major customer's M&A transaction affecting their volume commitments.

Risks and Concerns: Management identified elevated coffee prices, tariffs, and uncertainties from a key customer's M&A as ongoing risks. Despite these challenges, they expressed confidence in their operational strategies and financial flexibility to navigate potential headwinds.

Quarterly Performance: Westrock Coffee Company reported a quarterly loss of $0.05 per share, matching the Zacks Consensus Estimate, with revenues of $354.83 million, exceeding expectations by 24.20%.

Stock Outlook: The company's shares have declined by 33.7% this year, and its Zacks Rank is currently #3 (Hold), indicating expected performance in line with the market.

Earnings Estimates: The consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $295.37 million, while the current fiscal year estimate is -$0.29 on $1.08 billion in revenues.

Industry Context: The Beverages - Soft drinks industry is ranked in the bottom 41% of Zacks industries, suggesting that the overall industry outlook could significantly impact Westrock's stock performance.

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