Shares of Westrock Coffee plummeted by nearly 10% on Thursday, after Telsey Advisory Group slashed its price target on the coffee chain operator from $14 to $10 while maintaining an Outperform rating.

The investment firm cited concerns over Westrock's high operating costs and slowing pace of store expansion in their decision to lower the price target. Telsey analyst Mark Astrachan stated in a note, "While we remain bullish on Westrock's long-term growth prospects, the company faces challenges in the near-term from elevated costs for ingredients, labor and real estate."

Despite the sharp decline, some analysts believe the sell-off has been overdone, with the stock now trading at an attractive valuation multiple. Westrock's expansion into premium coffee beverages and loyalty program initiatives could help drive a recovery in the coming quarters.