TD Cowen analyst Robert Moskow maintained a Buy rating on Vital Farms (VITL – Research Report) today and set a price target of $42.00.
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Robert Moskow has given his Buy rating due to a combination of factors that suggest Vital Farms is well-positioned for future growth. Despite a negative market reaction to their recent price increase, Moskow believes the concerns are exaggerated. The price hike is a strategic move to safeguard margins against rising costs, and the company has shown resilience in maintaining volume despite higher prices.
Additionally, Moskow notes that Vital Farms’ consumer base, which tends to be higher-income, is likely to absorb the increased prices without a significant drop in demand. The company’s conservative guidance is seen as a prudent approach, allowing room for upward revisions as their capacity expansion progresses. With expectations of increased sales growth and EBITDA, Moskow sees strong potential for Vital Farms to outperform current market expectations.
According to TipRanks, Moskow is a 4-star analyst with an average return of 2.5% and a 48.53% success rate. Moskow covers the Consumer Defensive sector, focusing on stocks such as Mondelez International, Vital Farms, and Freshpet.
In another report released today, Lake Street also reiterated a Buy rating on the stock with a $50.00 price target.