Brian Holland lowers Freshpet stock price target to $101 at DA Davidson

Published 07/08/2025, 13:54
Brian Holland lowers Freshpet stock price target to $101 at DA Davidson

Investing.com - DA Davidson analyst Brian Holland lowered the price target on Freshpet (NASDAQ:FRPT) to $101.00 from $105.00 while maintaining a Buy rating. The stock currently trades at $63.69, down over 56% in the past six months, with InvestingPro analysis suggesting the company is currently undervalued despite trading at a P/E ratio of 93.4.

The price target reduction represents a $4.00 decrease from the previous target of $105.00, though the firm’s positive Buy recommendation on the pet food company remains unchanged. The company has demonstrated strong fundamentals with 19.3% revenue growth in the last twelve months. For deeper insights into Freshpet’s valuation and growth metrics, check out the comprehensive research report available on InvestingPro.

The analyst note contains comments about assuming coverage of Vertex (NASDAQ:VRTX) with a NEUTRAL rating and a $29 price target following 2Q25 earnings that were described as "largely in-line with guidance."

The note mentioned that full-year 2025 guidance was revised downward due to uncertain macroeconomic conditions, though it’s unclear if this directly relates to Freshpet or Vertex.

Despite near-term adjustments, the analyst indicated that "the long-term growth outlook remains on track driven by the ongoing ERP upgrade cycle," though again it’s unclear whether this specifically applies to Freshpet or Vertex.

In other recent news, Freshpet reported its second-quarter 2025 earnings, revealing a significant earnings-per-share (EPS) of $0.33, which exceeded forecasts of $0.11 by 200%. Despite this earnings surprise, the company experienced slightly lower-than-expected revenues, reporting $265 million against a consensus estimate of $268 million. This revenue still represented a 13% year-over-year growth. Analysts have responded to these developments with varying perspectives. Benchmark lowered its price target for Freshpet to $95, citing macroeconomic concerns, although it maintained a Buy rating. Stifel also maintained its Buy rating and a $90 price target, noting stronger-than-expected EBITDA driven by margin expansion. Meanwhile, UBS reiterated a Sell rating with a $65 price target, expressing concerns about Freshpet’s growth potential despite acknowledging its flexibility in profitability targets. These recent developments highlight diverse analyst opinions on Freshpet’s financial performance and future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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