UBS reiterates Sell rating on Freshpet stock, citing growth concerns

Published 05/08/2025, 16:14
UBS reiterates Sell rating on Freshpet stock, citing growth concerns

Investing.com - UBS maintained its Sell rating and $65.00 price target on Freshpet (NASDAQ:FRPT) in a research note published Tuesday. The stock, currently trading at $69.24, sits near its 52-week low of $64.69, having declined over 53% in the past six months.

The investment bank expressed concerns about Freshpet’s top-line growth potential, despite acknowledging the company has "ample flexibility on profitability targets."

UBS views Freshpet’s revised goal of mid-teens percentage growth over the long term as "aspirational" and instead models approximately 10% compound annual growth rate for fiscal years 2026-2027.

The firm noted that upcoming Sam’s Club sales should begin appearing in scanner data soon, but stated it has "yet to see any signs of improvement/reacceleration in underlying trends."

UBS cited continued muted performance in the dog food category and anticipated greater competitive pressure later this year as additional factors supporting its view that "the risk/reward skews to the downside" for Freshpet stock.

In other recent news, Freshpet Inc . announced its second-quarter 2025 earnings, showcasing a notable earnings-per-share (EPS) surprise. The company reported an EPS of $0.33, significantly exceeding the forecasted $0.11, resulting in a 200% surprise. Although Freshpet slightly missed revenue expectations, the strong earnings performance has generated positive investor sentiment. The company’s strategic initiatives are believed to have played a role in this robust earnings result. This development follows a period of active market interest in Freshpet, as evidenced by the company’s pre-market stock performance. Analysts and investors are closely watching Freshpet’s future earnings potential. The recent earnings report highlights Freshpet’s ability to outperform market expectations. These recent developments underscore the company’s current financial trajectory.

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