DA Davidson raises Vital Farms stock price target to $52 on capacity growth

Published 11/08/2025, 11:10
DA Davidson raises Vital Farms stock price target to $52 on capacity growth

Investing.com - DA Davidson raised its price target on Vital Farms (NASDAQ:VITL) to $52.00 from $51.00 on Monday, maintaining a Buy rating on the stock. The company’s shares have shown remarkable momentum, surging 25% in the past week and currently trading near its 52-week high of $46.21. According to InvestingPro data, seven analysts have recently revised their earnings estimates upward.

The research firm cited improving supply and capacity constraints as key factors behind the adjustment, noting that inventory tightness is abating while consumer awareness increases from enhanced advertising and promotion activities.

DA Davidson expects Vital Farms to benefit from scale advantages as these improvements create what it describes as a "virtuous cycle" for the company’s operations.

The firm revised its FY25E-FY26E adjusted EBITDA estimates upward to $110.0 million and $122.4 million, respectively, supporting the higher price target.

DA Davidson acknowledged uncertainty regarding tariff timing and policy, which led to more conservative FY26E projections that "may prove conservative" according to its analysis.

In other recent news, Vital Farms has reported impressive financial results for the second quarter of 2025. The company achieved revenue of $185 million, surpassing both BMO Capital’s estimate of $174 million and the consensus forecast of $171 million. Additionally, Vital Farms experienced a notable volume growth of 15% year-over-year. Analysts have responded positively to these results, with DA Davidson reiterating a Buy rating and a price target of $51.00, noting the company’s strong financial performance. TD Cowen also raised its price target to $48.00, maintaining a Buy rating, and highlighted that management increased its 2025 guidance above consensus estimates. Morgan Stanley (NYSE:MS) adjusted its price target to $48.00, citing the company’s "outsized topline growth opportunity" and projecting a 21% three-year compound annual growth rate for revenue from 2025 through 2027. BMO Capital and Telsey Advisory Group both raised their price targets to $50.00, maintaining Outperform ratings, and acknowledged Vital Farms’ strong second-quarter results. Telsey also noted that the company’s adjusted earnings per share of $0.36 exceeded both their forecast and the FactSet consensus.

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