Freshpet (FRPT) remains well positioned to deliver on full-year targets even with rising freight costs, Oppenheimer said Thursday in a report.
Oppenheimer sees upside potential to Wall Street forecasts for Q1 sales growth of 10.9%, driven in part by significant distribution gains at Costco Wholesale (COST).
Amid a more uncertain cost and consumer-spending landscape, Oppenheimer expects Freshpet to at least reaffirm full-year 2026 guidance, which could set the company up for beats and raises later in the year.
Kirkland Signature, Costco's private-label line, is a formidable competitor, though Freshpet's stronger product offering and significant presence at the retailer should allow healthy growth to continue, the report said.
Investor sentiment toward Freshpet's intermediate- to longer-term prospects remains mixed, driven by concerns about new competition and mixed signals in the pet category, the report said.
Q1 results are due Wednesday. Freshpet remains Oppenheimer's top small-cap pick in a difficult consumer-staples backdrop.
Oppenheimer has an outperform rating on Freshpet stock with an $80 price target.
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