Freshpet: Long-Term Margin Potential Intact but Elevated Near-Term Spending Justifies Neutral Stance

Bank of America Securities analyst Peter Galbo reiterated a Hold rating on Freshpet yesterday and set a price target of $80.00.

Peter Galbo has given his Hold rating due to a combination of factors, including Freshpet’s solid margin performance in 4Q and the company’s newly issued 2026 outlook. While adjusted EBITDA modestly exceeded expectations on the quarter, the 2026 EBITDA guide came in below prior Street assumptions as management plans to step up SG&A, particularly in advertising and rebuilding incentive compensation.

Galbo also notes that although Freshpet still targets attractive 2027 profitability, with adjusted EBITDA margins of 20–22% depending on growth, the near‑term earnings trajectory is pressured by this higher spending and potential incremental capex. As a result, he maintains a Neutral stance and lifts the price objective only slightly, viewing the current valuation as largely reflecting both the improved visibility on long‑term margins and the softer near‑term earnings outlook.

In another report released today, TipRanks – Anthropic also reiterated a Hold rating on the stock with a $84.00 price target.