Freshpet (FRPT) management appears capable of stabilizing the company's top-line even amid new competition, Oppenheimer said in a Friday note.
Management should be able to sustain 2026 and 2027 top-line growth in the high-single digits even with new competition such as Costco Wholesale's (COST) Kirkland Signature brand, Oppenheimer said.
Competitors have struggled to gain traction in the fresh pet food segment at retail, Oppenheimer said, noting Kirkland's Signature product could be a "formidable competitor" if it had a lower price point.
Oppenheimer also said that Freshpet shares have "downside support" because the company remains "a takeout candidate longer term" by pet food manufacturers and retailers who have shown a growing interest in the category.
Oppenheimer upgraded Freshpet to outperform from perform, with an $80 price target.
Price: 63.94, Change: +0.77, Percent Change: +1.21
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