Susquehanna analyst Pablo Zuanic reiterated a Hold rating on Freshpet (NASDAQ: FRPT) yesterday and set a price target of $25. The company’s shares closed yesterday at $29.10, close to its 52-week high of $30.85.
Zuanic noted:
“The sales growth of +23.0% for 2Q18 came in ahead of expectations (consensus +19%), especially surprising given that the quarter was expected to face the toughest comp all year (base ad spend ramp, holiday timing). The adjusted EBITDA margin fell -290bps yoy (the company notes that the $ decline is largely due to the planned media spend), as pressure from commodity inflation and higher freight costs remains. While net sales guidance was revised higher mainly on better than anticipated YTD growth, adjusted EBITDA guidance was reiterated; a full breakout of whether the higher net sales would flow into additional reinvestment or if costs were expected to be higher was not delineated, but continued commodity cost inflation was cited as one of the factors for the reiteration.”
According to TipRanks.com, Zuanic is a 4-star analyst with an average return of 6.5% and a 55.0% success rate. Zuanic covers the Consumer Goods sector, focusing on stocks such as Coca-Cola European Partners, Constellation Brands Inc, and Anheuser-Busch Inbev Sa.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Freshpet with a $30.50 average price target, implying a 4.8% upside from current levels. In a report released yesterday, Oppenheimer also maintained a Hold rating on the stock.
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The company has a one-year high of $30.85 and a one-year low of $14.10. Currently, Freshpet has an average volume of 283.6K.
Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is negative on the stock.
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Freshpet, Inc. engaged in the manufacturing, marketing, and distribution of pet food and pet treats for dogs and cats. Its products are sold throughout the United States and in Canada under the Freshpet Select, Vital, and Nature’s Fresh brands. The company was founded by Scott Morris and Cathal Walsh in October 2006 and is headquartered in Secaucus, NJ.
