In a report released today, Robert Moskow from TD Cowen maintained a Hold rating on Freshpet, with a price target of $72.00.
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Robert Moskow has given his Hold rating due to a combination of factors impacting Freshpet’s current and future performance. The company’s second-quarter sales growth fell short of expectations, and management has adjusted its sales and capital expenditure guidance for 2025 downward. Although there was an encouraging EBITDA performance, the outlook for the latter half of the year remains uncertain, with management’s projections for significant sales increases appearing ambitious given the current market conditions.
Freshpet’s management is optimistic about achieving sequential sales improvements through distribution expansion, new advertising efforts, and value-focused products. However, the competitive landscape is expected to intensify with Blue Buffalo’s entry into the fresh pet food market, which could target Freshpet’s existing customer base. Additionally, while Freshpet has maintained its EBITDA margin guidance, it is contingent on stabilizing growth rates, which presents a challenge. These factors contribute to the Hold rating, reflecting a cautious stance amid potential risks and uncertainties.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $70.00 price target.