Vital Farms downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Megan Alexander Clapp downgraded Vital Farms (VITL) to Equal Weight from Overweight with a price target of $24, down from $45. The firm says the company’s lower implied Q1 revenue outlook along with “elevated” industry promotional intensity reduce Vital ‘s near-term visibility and raise questions around the achievability of its fiscal 2026 growth expectations. Morgan Stanley adds the stock’s valuation “appears low.”