TSX runs higher on rate cut expectations
Investing.com - Vital Farms (NASDAQ:VITL) stock gained after DA Davidson reiterated its Buy rating and $51.00 price target on the ethical food company. The stock, currently trading near its 52-week high of $45.72, has shown impressive momentum with a 24.35% gain in the past week.
The research firm noted that Vital Farms "easily bested" its street-high second-quarter 2025 adjusted EBITDA expectations, demonstrating strong financial performance for the period. According to InvestingPro data, the company’s EBITDA stands at $75.21M, with a robust revenue growth of 23.96% over the last twelve months.
DA Davidson highlighted that Vital Farms flowed through its first-half overdelivery in its revised outlook, which the firm believes underscores conviction in the company’s second-half setup.
The analyst report praised Vital Farms for "firing on all cylinders" across multiple business areas, including successful price increases, adding partner farms, executing capacity expansion at its Springfield, Missouri facility, and accelerating capital expenditure for its next facility in Seymour, Indiana.
DA Davidson also pointed to Vital Farms’ "scarcity value" as a positive factor, noting that peers in the sector are facing below-algorithm fiscal year 2025 performance. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its fair value, with comprehensive valuation metrics available in the Pro Research Report.
In other recent news, Vital Farms has reported strong second-quarter 2025 results, surpassing analyst expectations. The company achieved a revenue of $185 million, exceeding BMO Capital’s estimate of $174 million and the consensus forecast of $171 million, with a notable volume growth of 15% year-over-year. Additionally, Vital Farms reported an adjusted earnings per share of $0.36, surpassing Telsey Advisory Group’s forecast of $0.27 and the FactSet consensus of $0.28. Following these robust earnings, several investment firms have adjusted their price targets for the company. TD Cowen has raised its price target to $48 from $42, while maintaining a Buy rating. Similarly, Morgan Stanley (NYSE:MS) increased its target to $48 from $41, citing an underappreciated growth opportunity and projecting a 21% revenue growth rate from 2025 to 2027. BMO Capital and Telsey Advisory Group both raised their price targets to $50, with BMO acknowledging the company’s strong quarterly performance. These developments reflect a positive outlook from analysts on Vital Farms’ future growth potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.