Lake Street analyst Ben Klieve reiterated a Buy rating on Vital Farms (VITL – Research Report) today and set a price target of $32.00.
Ben Klieve has given his Buy rating due to a combination of factors that underscore Vital Farms’ commitment to its brand promise and its positive long-term growth prospects. Klieve’s assessment is reinforced by a recent visit to an egg supplier, which demonstrated the company’s alignment with its ethical and sustainable brand values. This alignment is seen as a driver of shareholder value and market appreciation. He also believes that there is still potential for the stock to grow through both multiple expansion and potential earnings outperformance, leading to his raised price target from $26 to $32.
Klieve’s optimism is also rooted in the efficient use of land by Vital Farms’ suppliers, who implement regenerative agriculture practices on terrain that would otherwise be underutilized. The company’s strategic use of land for producing a significant volume of eggs while adhering to its sustainable and ethical principles impresses the analyst. Additionally, the forthcoming earnings report is anticipated to meet or slightly exceed expectations, reinforcing confidence in the stock. Klieve expects that as the company progresses towards its FY27 financial targets, the visibility and investor confidence will increase, justifying a higher earnings multiple and supporting his increased 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.
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