Analyst Todd Brooks of Benchmark Co. reiterated a Buy rating on Freshpet, retaining the price target of $80.00.
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Todd Brooks has given his Buy rating due to a combination of factors surrounding Freshpet’s recent developments and financial outlook. Despite the departure of CFO Todd Cunfer, who played a crucial role in improving profitability, the company has shown resilience by reaffirming its FY25 guidance. This guidance includes a projected net sales growth of 13% to 16% and an AEBITDA range of $190M to $210M, which suggests confidence in their strategic direction.
Furthermore, Brooks highlights the valuation aspect, noting that Freshpet’s shares are currently trading at a lower multiple compared to historical levels. This presents an attractive opportunity for investors, especially given the reaffirmation of guidance amidst a challenging consumer macro environment. The $80 price target is based on a 20x multiple of the FY26 AEBITDA estimate, indicating potential upside as the market conditions stabilize and the company continues to execute its growth strategy.
Brooks covers the Consumer Cyclical sector, focusing on stocks such as First Watch Restaurant Group, Red Robin Gourmet, and Potbelly. According to TipRanks, Brooks has an average return of -3.1% and a 37.98% success rate on recommended stocks.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $88.00 price target.