Freshpet downgraded to Neutral from Buy at BofA

BofA downgraded Freshpet (FRPT) to Neutral from Buy with a price target of $60, down from $81. Pet food category growth, and dog food in particular, has seen growth deteriorate over the last six months as pet adoptions have slowed and consumers have pulled back on spending, the analyst tells investors. For Freshpet, which is also contending with new entrants to the category, this has led to deceleration in topline growth from over 20% in late 2024 to low double to high single digits, notes the analyst, who thinks upside in shares is likely capped for the next 12 months unless the category or company sees a meaningful reacceleration.