Goldman Sachs Adds Freshpet (FRPT) to CL-Buy List

Goldman Sachs upgraded Freshpet (NASDAQ: FRPT) from Buy to Conviction Buy with a price target of $23 (unchanged). Analyst Jason English expects an inflection in unit productivity.

"We continue to see opportunity for FRPT to capture greater share of the pet food market, driving a roughly 30% revenue CAGR. With substantial upfront investment made we expect sales to drop through to EBITDA at a roughly 45% rate, resulting in an EBITDA forecast of $68 mn in FY18. Since our initiation FRPT’s EBITDA has inflected positively but unit productivity continued to decelerate. Subsequent retail and proprietary survey data points have been encouraging and bolster conviction in our belief that unit productivity will sustainably inflect beginning with 4Q14 results (March 31). We add FRPT to Americas Conviction List ahead of this inflection," said English.

For an analyst ratings summary and ratings history on Freshpet click here. For more ratings news on Freshpet click here.

Shares of Freshpet closed at $18.31 yesterday.

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