J.P. Morgan analyst Kenneth Goldman maintained a Hold rating on Freshpet (FRPT – Research Report) today and set a price target of $102.00.
Kenneth Goldman’s rating is based on a balanced assessment of Freshpet’s current market position and future prospects. On the positive side, Freshpet’s revenue growth remains impressive within the U.S. consumer staples sector, even if it slows down. Additionally, the company’s fundamentals suggest it could continue to be a growth story for years to come, and its valuation compared to the S5PACK Index has become more appealing.
However, Goldman expresses concerns about shifting consumption trends, particularly among lower- and middle-income consumers, which could impact Freshpet’s market penetration. He also questions the accuracy of consensus estimates for the company’s future performance, noting that buying into a decelerating growth story at a premium valuation is risky. While the stock’s current price might tempt some investors, Goldman advises caution, as he believes the company still faces challenges related to consumption trends and potentially optimistic market estimates.
Goldman covers the Consumer Defensive sector, focusing on stocks such as The Hershey Company, Kroger Company, and Campbell Soup. According to TipRanks, Goldman has an average return of 11.0% and a 60.59% success rate on recommended stocks.
In another report released on February 20, Citi also maintained a Hold rating on the stock with a $123.00 price target.