TD Cowen analyst Robert Moskow has maintained their bullish stance on VITL stock, giving a Buy rating on March 24.
Robert Moskow has given his Buy rating due to a combination of factors that suggest potential growth for Vital Farms despite current challenges. The company is experiencing near-term capacity constraints, which have impacted its market share in the pasture-raised egg category. However, Moskow notes that these constraints are temporary and are not indicative of a decrease in consumer demand.
Additionally, Vital Farms is actively working to address pricing issues that have arisen due to retailer-imposed premiums. The company is negotiating with retailers to remove these premiums, which could help reduce the price gap with competitors. Moskow’s confidence in Vital Farms’ expansion plans and its ability to navigate these pricing challenges underpins his optimistic outlook for the stock.
In another report released on March 24, Morgan Stanley also initiated coverage with a Buy rating on the stock with a $40.00 price target.