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Investing.com - BMO Capital raised its price target on Vital Farms (NASDAQ:VITL) to $60.00 from $50.00 on Tuesday, while maintaining an Outperform rating on the stock. The company, currently trading at $51.09 with a market capitalization of $2.28 billion, has demonstrated strong momentum with a 62% return over the past year.
The price target increase follows investor meetings with Vital Farms’ Founder & Chairman, President & CEO, and CFO, where discussions centered on the company’s asset-light business model and growth potential in the U.S. pasture-raised egg market.
BMO Capital cited "greater confidence" in its Outperform rating, pointing to the "long runway for growth in pasture raised eggs" and "strong visibility on VITL’s farmer pipeline and capacity expansion projects."
The firm also noted Vital Farms’ demonstrated ability to manage external factors, including highly pathogenic avian influenza (HPAI) and tariffs, which have affected the broader egg industry.
The new $60 price target represents 2.8 times enterprise value to sales based on BMO’s 2026 sales estimates for the company. The stock is currently trading near its InvestingPro Fair Value, with seven analysts recently revising their earnings estimates upward for the upcoming period.
In other recent news, Vital Farms has seen several positive developments. The company has reported strong financial performance, particularly highlighted by surpassing second-quarter 2025 adjusted EBITDA expectations, as noted by DA Davidson. This financial strength has led to multiple analyst firms raising their price targets for Vital Farms. Mizuho increased its target to $53, citing improvements in the supply chain and sales projections, while DA Davidson adjusted its target to $52, pointing to increased capacity and consumer awareness.
Additionally, TD Cowen raised its price target to $48 following Vital Farms’ second-quarter results that exceeded expectations and a subsequent increase in 2025 guidance by the company’s management. Morgan Stanley also raised its target to $48, emphasizing the company’s growth outlook, with a projected 21% compound annual growth rate for revenue from 2025 to 2027. These developments indicate a strong market confidence in Vital Farms’ future performance.
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