Freshpet (FRPT) PT Raised to $177 at Jefferies After Capacity Constrained Earnings

February 23, 2021 8:25 AM EST
Get Alerts FRPT Hot Sheet
Price: $170.48 -1.14%

Rating Summary:
    12 Buy, 5 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 8 | New: 31
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Jefferies analyst Stephanie Wissink raised the price target on Freshpet (NASDAQ: FRPT) to $177.00 (from $167.00) after Q4 results were In line with the January preannouncement. Q4 Sales were +29% Y/Y to $84.5M while GM% was 45.8%, -330bps Y/Y due to production downtime due to staffing/COVID and beef inflation, offset by higher ASPs. SG&A ratio improved 430bps Y/Y on sales leverage.

The analyst reiterated a Buy rating, stating "We are standing by our growth thesis with sales estimates moving higher offset by accel. investments in labor & capacity to satisfy inventory gaps at retail & the persistence of superior demand. Visibility remains high into a multi-year biz trajectory; path to $1.25B in 2025 at 25% margins (=$312.5M EBITDA) vs. $61M guided for 2021. Capacity is constrained & the company is building more, faster with benefits on the backside in 2022+."

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