Freshpet initiated with a Neutral at Citi

Citi initiated coverage of Freshpet with a Neutral rating and $94 price target. The firm expects organic sales growth to “handily outpace” other packaged food companies in its coverage for the foreseeable future and also sees a path over time to the higher EBITDA margin that it targets. However, consensus estimates already seem to reflect these sales growth and EBITDA margin expansion, and the firm is not confident that upside to either metric is likely, the analyst tells investors.