2023-08-08 07:11:34 ET
Freshpet ( NASDAQ: FRPT ) is on watch on Tuesday after JPMorgan cut its rating on the pet supplies retailer to Neutral from Overweight.
Analyst Ken Goldman and team believe that the long-term growth opportunity for Feshpet ( FRPT ) is appealing as a premium brand in a premium part of a growing category. The firm also likes the company’s moat of company-owned refrigerators and its manufacturing footprint that provides legitimate protection against competition.
"Though the last couple of years have been volatile and the capital costs of building this business will probably always be high, we believe that the long-term growth story remains intact."
However, the ratings cut from JPMorgan is due to valuation and the view that the stock is trading close to fair value. JPMorgan sees fair value on FRPT at $84 per share.
Shares of Freshpet ( FRPT ) moved down 0.94% in premarket trading to $81.48.
More on Freshpet:
- Freshpet earnings call transcript
- Recent options trades
- Growth metrics on Freshpet
- Seeking Alpha's Quant Rating for Freshpet
For further details see:
Freshpet falls after JPMorgan downgrades on a valuation call