Vital Farms downgraded to Neutral from Buy at DA Davidson

DA Davidson downgraded Vital Farms (VITL) to Neutral from Buy with a price target of $16, down from $47. The firm says increased egg supply has weighed on prices, just as Vital accelerated supply and capacity expansion efforts. The company’s brand equity “has also taken a hit and management appears poised to guide down for the third time in six months,” the analyst tells investors in a research note. DA “can’t defend the stock into this setup.”