DA Davidson has raised its price target for Freshpet Inc. (NASDAQ:FRPT) to $98 from $80 and retained a Buy rating on the shares. The stock is trading at $80.86, reflecting notable momentum with a 44% gain over the last six months and a 33% year-to-date return.
The analyst firm identified three principal channels it expects to sustain or accelerate Freshpet's net sales growth from a high single-digit base: value, distribution, and direct channels. DA Davidson emphasized that substantial media investment underpins these channels, supporting continued top-line expansion.
Manufacturing capability was singled out as a strategic advantage in the DA Davidson note. The firm said Freshpet’s manufacturing operations provide multiple avenues to deliver meaningful margin expansion, specifically through scale, operational efficiencies, and adoption of technology.
DA Davidson also indicated that it places weight on competitive advantages and upside potential given the current conditions in the food sector, and listed Freshpet among its top picks in the category. The firm’s view was presented alongside third-party valuation signals: an InvestingPro Fair Value assessment that characterizes the stock as appearing undervalued, a ‘‘GREAT’’ financial health score for the company, and a reported PEG ratio of 0.16.
The firm’s recommendation arrives against a backdrop of slowing growth and rising competition across the broader food industry, which DA Davidson cited as context for its analysis.
Freshpet’s most recent reported results, for the fourth quarter of fiscal 2025, were highlighted by several analysts and follow-on target adjustments. The company posted revenue of $285 million and adjusted EBITDA of $61 million, both figures that exceeded Benchmark’s estimates. Reported earnings per share were $0.64, ahead of Benchmark’s expectation of $0.39.
In response to those results, multiple brokerages adjusted their outlooks. Benchmark raised its price target for Freshpet to $90 while maintaining a Buy rating. Stifel increased its price target to $84, citing margin improvements and solid EBITDA performance. TD Cowen raised its price target to $80 despite noting that Freshpet’s 2026 EBITDA guidance falls below consensus expectations, and described its move as reflecting a positive growth outlook. Morgan Stanley upgraded the stock to Overweight and raised its price target to $90, anticipating a sequential re-acceleration in topline growth for 2026.
Separately, DA Davidson was also noted as having reiterated a Buy rating with an $80 price target while pointing to stable trends and growth potential. Taken together, these analyst actions underscore a broadly constructive tone among analysts following the quarter.
Investors should weigh the combination of Freshpet’s reported outperformance, the strategic emphasis on manufacturing scale and channel expansion, and the cluster of analyst target changes when assessing the stock. The market reaction to those elements has coincided with above-average share performance over recent months.