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Investing.com - Stifel has reiterated its Buy rating and $90.00 price target on Freshpet (NASDAQ:FRPT) following the company’s second-quarter earnings report that showed stronger-than-expected EBITDA despite softer sales growth. The company, currently valued at $3.37 billion, has generated $138 million in EBITDA over the last twelve months. According to InvestingPro analysis, Freshpet appears undervalued at current levels.
The pet food company reported second-quarter results with EBITDA exceeding expectations, driven by stronger margin expansion that more than offset weaker sales growth performance.
Freshpet lowered its 2025 revenue guidance while maintaining its EBITDA outlook, with the sustained EBITDA projection supported by stronger margin expansion that compensates for the sales slowdown.
Stifel’s 2025-2027 sales and adjusted EBITDA estimates remain largely unchanged following the second-quarter results, with the firm viewing Freshpet’s updated 2027 targets as encouraging despite the sales slowdown.
The research firm noted that while it maintains its Buy rating and $90 target price, Freshpet shares could remain range-bound in the near term until the company demonstrates a reacceleration in sales trends and household penetration.
In other recent news, Freshpet reported its second-quarter 2025 earnings, delivering a notable earnings-per-share (EPS) of $0.33. This figure significantly surpassed analyst expectations of $0.11, representing a 200% surprise. However, the company slightly missed revenue projections despite the impressive EPS results. In analyst coverage, UBS reiterated its Sell rating on Freshpet, maintaining a price target of $65.00. The investment bank expressed concerns over Freshpet’s top-line growth potential, though it acknowledged the company’s flexibility regarding profitability targets. These developments highlight the mixed sentiment surrounding Freshpet’s financial health and future growth prospects.
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