Vital Farms initiated with an Outperform at BMO Capital

BMO Capital initiated coverage of Vital Farms (VITL) with an Outperform rating and $44 price target which implies 23% upside from the current share price. Vital is a “high-growth” branded food company, focused on production, marketing, and distribution of pasture-raised eggs and butter, the analyst tells investors in a research note. The firm says that despite guiding to slower growth in Q1 due to lower expected volumes, it expects the company to beat 2025 guidance on a second half acceleration in volumes. Vital has established a dominant lead position in producing, marketing and distributing pasture-raised eggs, contends BMO.