Four Freedom Broker ideas neared their targets: what worked in analysts’ forecasts

At the start of the year, Freedom Broker analysts published several investment ideas that reached target prices a few months later. Experts pointed to upside potential in Dakota Gold (DC), Unitil (UTL), Block (XYZ) and The Vita Coco Company (COCO) driven by different factors — from higher gold prices and the expansion of regulated infrastructure to accelerating fintech metrics and a surge in demand for functional beverages. 

Dakota Gold: a bet on gold and deposit development

Dakota Gold (DC) is a U.S. exploration company advancing projects in the Homestake district of South Dakota. Freedom Broker analysts viewed the stock as a bet on rising gold prices and progress at the Maitland and Richmond Hill projects. At the time the investment idea was published in October 2025, analysts set a target price of $5,50. The stock now trades at $6,23, already 13,3% above the initial target.

A key argument from the analysts was the high potential economic impact of developing the deposits. For the project, NPV (the sum of all future cash flows from a project or business) was estimated at $1,6 bn, and the internal rate of return at 55% at a gold price of $2350 per ounce. Estimated AISC (all-in sustaining costs) was about $1050 per ounce, creating the potential for high profitability under favorable gold-market conditions.

The company is expanding its resource base

According to the latest quarterly financial results, Dakota Gold does not generate significant operating revenue and continues to invest in exploration. In the first six months of 2026, exploration spending nearly doubled from $6,9 mn to $13,0 mn, while total operating expenses increased from $10,7 mn to $18,2 mn.

The net loss for the first half amounted to $16,8 mn versus $10,2 mn a year earlier. At the same time, the company’s financial position strengthened markedly: cash as of the end of June reached $99,3 mn versus $29,7 mn at the end of 2025. Assets rose from $115,9 mn to $187,8 mn, and shareholders’ equity from $112,5 mn to $183,8 mn.

Unitil: infrastructure growth supports the defensive profile

Unitil Corporation (UTL) is a regulated New England utility operating in electricity and gas distribution and, following recent transactions, in the water sector. Freedom Broker analysts bet on a combination of a stable regulated business, rate base growth and a consistent increase in dividends. The target price in the investment idea was $55. The stock now trades at $54,56 — 0,8% below the target. 

Profit grows alongside business expansion

One of Freedom Broker’s main arguments was Unitil’s deals to expand its customer base and regulated asset base. Specifically, the company completed the acquisition of two assets: gas distribution company Bangor Natural Gas for $70,9 mn and gas company Maine Natural Gas for $86 mn. Unitil then entered the water segment through the purchase of a major water services provider in New England, Aquarion.

In Q2 2026, Unitil’s net income amounted to $4,7 mn versus $4,0 mn a year earlier, and EPS increased from $0,25 to $0,26. For the first half, net income reached $37,9 mn versus $31,5 mn, increasing by $6,4 mn.

Growth is primarily driven by regulated tariffs and an expanding customer base. Electric gross margin in Q2 increased by $5 mn to $23 mn, while gas gross margin rose by $1,8 mn to $25 mn. Over six months, gas gross margin grew by $11,8 mn to $92,1 mn.

Block: fintech focuses on efficiency

Block (XYZ) is a U.S. fintech company combining the Square payments platform for businesses with the consumer Cash App ecosystem. The Freedom Broker investment idea was based on the expectation that the company could move from simply growing users to deeper monetization of its existing audience while also improving operating efficiency. Analysts set a target price of $90. The shares now trade at $82,88, leaving about 8% upside to the target.

Cash App and Square accelerate growth

When the idea was published, analysts particularly highlighted growth in primary banking assets within the Cash App payment service, an increase in consumer lending and double-digit momentum in total payment volume across all transactions. An additional catalyst was expected to be large-scale cost cutting and the deployment of AI in operational processes.

In Q2 2026, Block’s gross profit rose 25% year over year, and adjusted operating margin reached a record 27%. Adjusted earnings per share increased 65% to $1,02.

At the same time, Square’s gross payment volume (GPV) grew 13%, with U.S. volume accelerating 10% and international volume up 28%. In Cash App, the number of users for whom the app became their primary banking service rose 17% year over year. Payments and activity volume through Cash App commercial services also increased 17%, while consumer loans originated surged 59%.

The company also raised its 2026 outlook: Block now expects gross profit to grow 21%, adjusted operating income 67%, and adjusted EPS 70%.

Vita Coco: coconut water demand exceeded expectations

The Vita Coco Company (COCO) is a U.S. producer of functional beverages, primarily Vita Coco coconut water. It also produces and sells other plant-based drinks geared toward a healthy lifestyle. In the Freedom Broker investment idea, analysts highlighted structural category growth, strong sales momentum, a debt-free balance sheet and the company’s ability to generate free cash flow. The target price was $58. The stock now trades at $65,21, which is 12,4% above the benchmark set by analysts.

Sales and profit growth accelerated

In Q2 2026, the company’s revenue increased 28% to $216 mn, while Vita Coco Coconut Water sales rose 21%. Gross profit climbed from $61 mn to $105 mn, and gross margin from 36% to 49%.

Net income more than doubled from $23 mn to $49 mn, and adjusted EBITDA increased from $29 mn to $67 mn. For the first half, revenue reached $396 mn versus $300 mn a year earlier, while adjusted EBITDA was $106 mn versus $52 mn.

Strong results allowed the company to raise its full-year guidance. Vita Coco now expects revenue in the range of $790–805 mn versus the previous forecast of $720–735 mn, and adjusted EBITDA of $154–161 mn versus $132–138 mn.

As of the end of June, the company had $279 mn in cash and no debt. Another element of capital return was the buyback: since the start of the year, the company has repurchased its shares for about $20 mn, and the total authorized program size, following a new board decision, increased to $105 mn.

This is not an individual investment recommendation.