Morgan Stanley analyst Megan Alexander maintained a Buy rating on Vital Farms yesterday and set a price target of $48.00.
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Megan Alexander’s rating is based on Vital Farms’ impressive third-quarter performance and optimistic future outlook. The company reported significant growth in both revenue and EBITDA, with a notable increase in volume despite higher pricing. This performance highlights Vital Farms’ strong market position and pricing power, as it continues to gain volume share in the market.
Looking forward, several factors contribute to the positive outlook for Vital Farms. The company is benefiting from secular trends in the egg industry, particularly in the pasture-raised segment. Additionally, there are opportunities for expanding product offerings with existing retail partners, and increased marketing efforts are expected to drive further consumer engagement. These elements, combined with improved supply capabilities, support sustained growth and justify the Buy rating.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $48.00 price target.