Freshpet’s Strong Market Position and Growth Potential Justify Buy Rating Amid Short-Term Challenges

Benchmark Co. analyst Todd Brooks has maintained their bullish stance on FRPT stock, giving a Buy rating on April 10.

Todd Brooks has given his Buy rating due to a combination of factors affecting Freshpet’s current and future performance. Despite lowering the price target to $140, Brooks acknowledges Freshpet’s strong market position in the fresh dog food segment, which is expected to help the company achieve significant AEBITDA growth by FY27. The decision to maintain a Buy rating is supported by the company’s dominant market share and the potential for growth in the $37 billion U.S. dog food market, where Freshpet currently holds a modest 3% share.
Additionally, Brooks notes that while there are short-term challenges, such as disruptions in the Pet Specialty channel and macroeconomic pressures affecting consumer confidence, these are considered transitory. Freshpet’s low exposure to tariff-related costs and the historical correlation between advertising and increased website traffic are seen as positive indicators for future growth. These factors, coupled with easing growth comparisons after 1Q25, contribute to the reaffirmation of the Buy rating, despite the revised price target reflecting current market conditions.

In another report released on April 10, Stifel Nicolaus also maintained a Buy rating on the stock with a $115.00 price target.

Based on the recent corporate insider activity of 67 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FRPT in relation to earlier this year.