On December 18, BMO Capital analyst Benjamin Mayhew reduced the firm's price target for Vital Farms Inc. (NASDAQ:VITL) to $50 from $60, keeping an Outperform rating. The adjustment came after the company's Investor Day, where BMO noted a downward revision to the 2025 outlook, which it described as disappointing but reflecting temporary disruptions that have been addressed. The firm pointed to a 2026 outlook that remains aligned with expectations and a long-term revenue CAGR in the low 20% range as supporting recovery.
A day earlier, on December 17, Morgan Stanley lowered its price target for Vital Farms to $45 from $48, maintaining an Overweight rating. During the Investor Day, management updated its long-term algorithm with targets that exceeded analyst expectations, but this was overshadowed by an unexpected cut to 2025 revenue guidance, which triggered a sharp sell-off in the stock.
Earlier, on December 5, Needham initiated coverage of Vital Farms with a Buy rating and a $45 price target, identifying the stock as a compelling proposition in the consumer staples sector. The firm's bullish outlook is driven by the company's strong volume-driven earnings fundamentals, which stand out in a market with few peers offering similar growth prospects.
Vital Farms Inc. is a food company that packages, markets, and distributes shell eggs, butter, and other products in the US.