Vital Farms initiated with Outperform on growing industry at William Blair

William Blair initiated coverage of Vital Farms with an Outperform rating. The analyst believes Vital is well positioned in the “large and growing” U.S. clean label food industry. The company’s “trusted and disruptive brand typically holds a leadership position in the clean label segments in which it competes,” the analyst tells investors in a research note. The firm finds the stock’s valuation as attractive, saying Vital should grow sales at a “strong” double-digit rate, with earnings growth above that of sales, over the next few years.