Needham starts Vital Farms with a Buy on continued volume growth potential

As previously reported, Needham initiated coverage of Vital Farms (VITL) with a Buy rating and $45 price target The current valuation clearly makes Vital “a compelling proposition,” but the firm’s Buy rating is underpinned by volume-driven earnings fundamentals in a staples backdrop with few companies offering comparable growth prospects, the analyst tells investors. A capacity build out is underway and the firm sees “ample whitespace” for Vital to drive continued volume growth through increased distribution and strong consumer offtake, the analyst added.