** Shares of coffee supplier Westrock Coffee Company
up ~1% at $6 premarket
** Brokerage Truist Securities initiates coverage on WEST with "buy" rating and PT of $10
** Says company is well-positioned to expand margins due to a new facility in Conway, Arkansas, specializing in coffee-based ready-to-drink (RTD) beverage manufacturing
** Notes RTD beverages have surged in retail sales due to more flavor and variety offerings along with convenience
** Believes co has untapped cross-selling opportunities as customers are using only one or two of the five main capabilities of the Conway plant, including canning, extracts, K-cups
** Blames the underperformance of the stock on uneven results of its major coffee & tea business and sees co's plans to install three new lines in the Conway plant in FY25 could offset this volatility
** Up to Friday's close, stock has fallen ~42% YTD
(Reporting by Neil J Kanatt in Bengaluru)
((Neil.JKanatt@thomsonreuters.com;))
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