Goldman Sachs analyst Adam Samuelson has maintained their neutral stance on VITL stock, giving a Hold rating yesterday.
Adam Samuelson’s Hold rating on Vital Farms (VITL) is influenced by several factors. VITL posted robust 3Q23 results, achieving sales targets while also showcasing healthy gross margins and proficient operational expense management, which resulted in an overall EBITDA increase for the quarter. Furthermore, the company maintained its projected guidance for 2023, implying a 4Q performance that may incorporate a certain level of managerial caution regarding promotional activities and marketing expenditures.
VITL continues to demonstrate vigorous brand management in both natural and conventional grocery sectors, setting it apart from other egg brands and the broader commodity egg market. The ability to maintain this performance in the forthcoming quarters, when comparisons against HPAI-driven commodity egg inflation will be most difficult, will be an important indicator for investors. Samuelson also notes that there is still considerable opportunity for VITL to enhance its product variety, store presence, and purchase rate in the conventional grocery sector into 2024. Although the 2024 revenue/EBITDA and 12-month target have been increased to $16, the Neutral rating is retained.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $14.00 price target.
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Vital Farms (VITL) Company Description:
Vital Farms Inc is an ethical food company. The company retails pasture-raised eggs and butter. Its products include Pasture-Raised Eggs and Pasture-Raised Butter & Ghee.
Read More on VITL:
- Vital Farms Reports Third Quarter 2023 Financial Results
- Vital Farms expects to generate net revenue over $1B by end of 2027
- Vital Farms sees 2023 net revenue over $465M, consensus $468.54M
- Vital Farms reports Q3 EPS 10c, consensus 5c
- HomeState, Franklin Barbecue, and Vital Farms Are Teaming Up to Bring Los Angeles The Best Breakfast Taco on the Planet
