Stifel Nicolaus analyst Matthew Smith, CFA upgraded the rating on Vital Farms (VITL – Research Report) to a Buy yesterday, setting a price target of $44.00.
Matthew Smith, CFA has given his Buy rating due to a combination of factors including an improved supply chain and processing capacity, which are expected to support Vital Farms’ near-term growth. The company has shown strong performance in the fourth quarter of 2024 and has provided guidance that surpasses previous estimates, indicating a positive outlook for revenue and EBITDA growth in fiscal year 2025.
Additionally, Vital Farms has made significant investments in expanding its farm and processing capabilities, which positions the company well to meet increasing demand. Despite a disclosed material weakness in accounting controls, this issue is not anticipated to affect current or historical financial results and is expected to be resolved by fiscal year 2026. The stock’s current valuation is considered attractive, and with anticipated growth acceleration, shares are expected to rise to the target price.
In another report released yesterday, Telsey Advisory also maintained a Buy rating on the stock with a $52.00 price target.
Based on the recent corporate insider activity of 130 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 VITL in relation to earlier this year.