Freshpet (FRPT) presentation at CAGNY "the most newsworthy so far" - Goldman Sachs

Goldman Sachs analyst Jason English reiterated a Buy rating and $82.00 price target on Freshpet (NASDAQ: FRPT), calling its presentation at CAGNY "the most newsworthy presentation of the event so far."

The analyst commented, "FRPT presented for the first time at CAGNY and delivered what we consider to be the most newsworthy presentation of the event so far. It introduced a new 5-year (2027) revenue target while highlighting the growth opportunity for refrigerated pet food while illustrating the head start it has on the numerous new competitors who have entered the segment. And it also introduced 2027 margin targets with building blocks of how it expects to get there while acknowledging the missteps it has made that have caused margins to disappoint in recent years. The 2027 EBITDA margin target of 18% is well below its prior 2025 target of 25% which, in our opinion, is likely to be viewed as a more credible target by investors, especially given that its current EBITDA margin is 0%. The company, however, refrained from providing a 2023 outlook (it plans to provide that when it reports 4Q22 earnings on Feb. 27) and we now wonder if today's lower EBITDA target will be followed by a below FactSet consensus margin outlook for 2023."

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 $62.45 yesterday.

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