Freshpet (FRPT) Stock Gains Today on 'Conviction Buy' Upgrade Ahead of Next Week's Earnings Release
NEW YORK (TheStreet) -- Freshpet (FRPT) - Get Report shares are up 6.83% to $19.56 in pre-market trading on Monday after the fresh pet food provider was upgraded to Goldman Sachs "conviction buy" list in a research note earlier today.
Freeshpet was upgraded to the "conviction buy list" from "buy" by analysts at the firm with a price target of $23 that represents a potential 18.5% upside from the stock's current price.
"We continue to see opportunity for FRPT to capture greater share of the pet food market, driving a roughly 30% revenue CAGR. With substantial upfront investment made we expect sales to drop through to EBITDA at a roughly 45% rate, resulting in an EBITDA forecast of $68 million in FY18. Since our initiation FRPT's EBITDA has inflected positively but unit productivity continued to decelerate. Subsequent retail and proprietary survey data points have been encouraging and bolster conviction in our belief that unit productivity will sustainably inflect beginning with 4Q14 results," said analysts.
Freshpet is scheduled to release its fourth quarter earnings results on March 31 with analysts on average expecting the company to report a net loss of 2 cents per share on revenue of $23.9 million.
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