Mizuho raises Vital Farms stock price target to $53 on supply chain improvements

Published 11/08/2025, 12:44
Mizuho raises Vital Farms stock price target to $53 on supply chain improvements

Investing.com - Mizuho (NYSE:MFG) raised its price target on Vital Farms (NASDAQ:VITL) to $53.00 from $45.00 on Monday, while maintaining an Outperform rating on the stock. The company, currently trading at $45.48 with a market cap of $2 billion, has shown impressive momentum with a 25% gain in the past week alone. According to InvestingPro, the stock is trading near its 52-week high of $46.21.

The price target increase follows what Mizuho described as "very solid upside" for sales and EBITDA, along with positive surprises in supply chain development that enhance confidence in the company meeting or exceeding its 2027 sales target.

Mizuho noted that Vital Farms is one of the most-shorted names in its space, with 23% of float shorted ahead of earnings, suggesting the positive outlook could encourage short covering and greater confidence in sustainable multi-year growth.

The research firm increased its EBITDA estimates for fiscal year 2025 to $113 million from $102 million and for fiscal year 2026 to $134 million from $125 million, basing its new price target on approximately 16 times its calendar year 2026 EBITDA estimate.

Mizuho also highlighted strong continued growth in the cage-free segment, which it expects to lead to larger penetration of pasture-raised varieties in the future.

In other recent news, Vital Farms has reported notable financial achievements in its second-quarter results. The company recorded revenue of $185 million, surpassing BMO Capital’s estimate of $174 million and exceeding the consensus forecast of $171 million. This performance has led several analyst firms to adjust their price targets for Vital Farms. BMO Capital raised its target to $50, citing the company’s strong quarterly results and volume growth of 15% year-over-year. Similarly, TD Cowen increased its price target to $48, acknowledging the company’s performance and its raised 2025 guidance above consensus estimates.

Morgan Stanley (NYSE:MS) also raised its price target to $48, highlighting Vital Farms’ significant growth potential, projecting a 21% compound annual growth rate in revenue from 2025 to 2027. DA Davidson adjusted its price target to $52, attributing the change to improving supply conditions and increased consumer awareness driven by advertising efforts. DA Davidson and Morgan Stanley both maintain positive outlooks, with Buy and Overweight ratings, respectively. These developments reflect Vital Farms’ strong market position and positive analyst sentiment.

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