General Mills entry into fresh pet food market pressures Freshpet stock

Published 25/08/2025, 15:28
General Mills entry into fresh pet food market pressures Freshpet stock

Investing.com - TD Cowen lowered its price target on Freshpet (NASDAQ:FRPT) to $63.00 from $72.00 on Monday, while maintaining a Hold rating on the stock. The company’s shares are currently trading near their 52-week low of $59.23, having declined over 41% in the past six months. According to InvestingPro analysis, Freshpet appears undervalued at current levels.

The firm cited regression analysis indicating slower sequential growth for the fresh pet food maker compared to prior years.

TD Cowen reduced its fourth-quarter 2025 sales growth estimate for Freshpet to 10%, below the consensus expectation of 13%, and lowered its full-year 2025 forecast to the low end of the company’s 13-16% guidance range.

The analyst noted that General Mills plans a national launch into the fresh dog food category in the fourth quarter, potentially converting Freshpet consumers to its Blue Buffalo brand.

TD Cowen warned that further downward revisions to Freshpet’s estimates might be necessary if General Mills’ competitive entry successfully draws customers away from Freshpet products.

In other recent news, Freshpet reported second-quarter earnings with stronger-than-expected EBITDA, driven by margin expansion, despite experiencing softer sales growth. The company achieved revenues of $265 million, marking a 13% increase year-over-year, though slightly below the consensus estimate of $268 million. Following these results, Benchmark lowered its price target for Freshpet to $95, citing macroeconomic concerns, while maintaining a Buy rating. Stifel also maintained its Buy rating with a $90 price target, despite Freshpet’s lowered 2025 revenue guidance.

UBS reiterated its Sell rating and set a price target of $65, expressing concerns about Freshpet’s growth potential. DA Davidson’s analyst, Brian Holland, adjusted the price target to $101 from $105 but kept a Buy rating. Meanwhile, JPMorgan assumed coverage of Freshpet with a Neutral rating, setting a price target of $70, down from $85. These developments reflect a mix of optimism and caution among analysts regarding Freshpet’s future performance.

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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