Vital Farms Stock Receives $51.70 Target as Analysts Recommend Buy

Vital Farms, Inc. (NASDAQ:VITL) has garnered a consensus recommendation of “Moderate Buy” from fourteen brokerage firms covering the stock, according to MarketBeat Ratings. Analysts have issued twelve buy recommendations and two hold recommendations, indicating a positive outlook for the company. The average price target for Vital Farms over the next year stands at $51.70.

Recent assessments from various research analysts highlight the stock’s performance. Notably, Weiss Ratings reaffirmed a “hold (C+)” rating for Vital Farms on November 19, 2023. Meanwhile, Stifel Nicolaus raised its target price from $44.00 to $48.00 and maintained a “buy” rating in a report dated August 8, 2023. On the other hand, Zacks Research downgraded the stock from a “strong-buy” to a “hold” rating on November 14, 2023. Cowen also reiterated a “buy” rating on September 18, 2023. BMO Capital Markets increased its price target from $50.00 to $60.00 and assigned an “outperform” rating in a note released on September 2, 2023.

Institutional investors have been active in adjusting their holdings in Vital Farms. Wellington Management Group LLP expanded its investment by 17.8% in the first quarter, owning 2,863,872 shares valued at $87.26 million. Wasatch Advisors LP increased its position by 13.9% in the third quarter, now holding 2,362,521 shares worth $97.22 million. Vanguard Group Inc. also grew its stake by 1.7%, acquiring an additional 39,361 shares. Other significant investments include American Century Companies Inc., which raised its holdings by 35.7%, and Principal Financial Group Inc., increasing by 23.1%. Currently, approximately 98.59% of the stock is owned by hedge funds and institutional investors.

Shares of Vital Farms opened at $31.35 on November 4, 2023, marking a 2.2% increase. The stock has experienced a 52-week low of $28.87 and a high of $53.13. Its moving averages show a 50-day average of $38.03 and a 200-day average of $39.17. With a market capitalization of $1.40 billion, the company maintains a price-to-earnings (P/E) ratio of 23.75, a beta of 0.86, and a debt-to-equity ratio of 0.02.

In its most recent earnings report issued on November 4, 2023, Vital Farms reported $0.36 earnings per share (EPS), exceeding analysts’ expectations of $0.30 by $0.06. The company’s quarterly revenue reached $198.94 million, surpassing estimates of $191.35 million. This performance reflects a year-over-year revenue growth of 37.2% compared to the same quarter last year, where the EPS was $0.16. Looking ahead, analysts forecast Vital Farms will report an EPS of $1.11 for the current year.

Vital Farms, based in Austin, Texas, specializes in pasture-raised food products, including shell eggs, butter, hard-boiled eggs, and liquid whole eggs. Established in 2007, the company has positioned itself as a leader in the sustainable food movement, prioritizing animal welfare and environmental responsibility in its operations.