Freshpet's stock surged 5.24% during pre-market trading on Tuesday, reflecting strong investor optimism following a series of positive analyst actions.
The significant pre-market movement was primarily driven by Morgan Stanley upgrading Freshpet to "overweight" from "equal-weight" and raising its price target to $90 from $71. The brokerage cited reduced competitive risk from General Mills' expansion in fresh dog food, noting the tepid consumer response to its Blue Buffalo's Love Made Fresh launch last year. Morgan Stanley also highlighted an underappreciated opportunity for Freshpet with Walmart's and Amazon's aggressive expansion in same-day grocery delivery.
Several other financial institutions joined in raising their outlook on the pet food retailer. JPMorgan increased its price target to $80 from $70, BofA Global Research raised its objective to $80 from $72, Jefferies lifted its target to $75 from $56, Stifel raised to $84 from $65, and Benchmark increased its target to $90 from $80. These collective upgrades contributed to the bullish sentiment driving the stock's pre-market performance.
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