Analyst Robert Moskow of TD Cowen reiterated a Buy rating on Vital Farms (VITL – Research Report), retaining the price target of $42.00.
Robert Moskow has given his Buy rating due to a combination of factors that highlight Vital Farms’ potential for recovery and growth. Despite the internal control issues disclosed in the company’s 10K report, which initially impacted the stock negatively, Moskow views these issues as isolated and manageable. The company’s rapid transition from emerging to large company status has brought about these challenges, but they are not seen as a significant threat to the company’s overall performance.
Another key factor in Moskow’s rating is the company’s better-than-expected sales guidance for 2025, projecting at least 22% growth, which surpasses the consensus expectation of 18%. This optimistic outlook is supported by the company’s capacity expansion plans and strong demand for its products. Although there are concerns about lower margins due to increased corn prices and a tough comparison to previous exceptional operations, the company’s EBITDA guidance of at least $100 million exceeds prior expectations, reinforcing confidence in its financial health and future prospects.
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.