Goldman Sachs Starts Freshpet (FRPT) at Buy

Goldman Sachs initiated coverage on Freshpet (NASDAQ: FRPT) with a Buy rating and a price target of $23.00.

Analyst Jason English said, "FRPT is disrupting the pet food market with a unique all-natural refrigerated fresh pet product that sits at the intersection of two secular trends: pet humanization and health and wellness. We see opportunity for refrigerated fresh pet food to capture nearly 1.5% of the cat and dog food market by 2018, which translates into a roughly 30% revenue CAGR for FRPT given its first mover advantage and barriers to entry. With substantial upfront investment made we expect 45% of new sales to drop through to EBITDA, resulting in an EBITDA forecast of a loss this year inflecting to nearly $68 mn in FY18. We view this growth story as scarce and compelling in Staples."

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 $16.73 yesterday.

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