In a report released today, Kaumil Gajrawala from Jefferies upgraded Freshpet (FRPT – Research Report) to a Buy, with a price target of $150.00.
Kaumil Gajrawala’s rating is based on several key factors. Despite a significant decline in Freshpet’s stock price this year, the company has demonstrated strong quarterly results and a positive outlook, presenting a promising investment opportunity. The pet industry is undergoing premiumization, which is expected to drive growth for Freshpet as they capitalize on this trend. With an estimated annual growth rate of 22.5% from 2025 to 2027 and an expected sales milestone of $1.8 billion, Freshpet is poised to expand its market share.
Additionally, Freshpet has proven its scalability by improving its profit margins and is on track to generate positive free cash flow by 2026. This financial stability reduces investment risk and makes the current valuation attractive, being at its lowest in five years. Furthermore, the company’s ability to balance growth with profitability and cash flow targets enhances its long-term investment appeal, supporting the Buy rating with a price target of $150.
In another report released on February 21, TD Cowen also maintained a Buy rating on the stock with a $141.00 price target.
Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FRPT in relation to earlier this year.