DA Davidson Hikes Vital Farms (VITL) Target, Cites Strong Growth Setup

Vital Farms, Inc. (NASDAQ:VITL) is one of the best high growth consumer stocks to buy now. On August 11, DA Davidson maintained its Buy rating on Vital Farms, Inc. (NASDAQ:VITL), while raising the price target from $51 to $52. That is an implied upside of 7.2%, from the current market price of $48.51. The stock has risen over 33% since reporting its Q2 earnings.

DA Davidson Hikes Vital Farms (VITL) Target, Cites Strong Growth Setup

A flock of pasture-raised chickens outdoors in their natural habitat.

According to DA Davidson, the setup for the stock remains compelling heading into the second half of the year. DA Davidson noted high earnings visibility, evident in last quarter’s results, and added that easing supply constraints and inventory tightness should further support growth.

The company continues to grow at a robust pace. The company reported revenue of $184.77 million in Q2, a 25.36% year-over-year growth, comfortably beating analysts’ estimates of $170.84 million. However, analysts contend that the growth may not be sustainable, given that its “pasture-raised” eggs may be easily mimicable.

Nonetheless, the company has built a brand around its reputation for sourcing ethically. The company has been building on this by reducing landfill waste.  Vital Farms, Inc. (NASDAQ:VITL) has expanded on its ethical sourcing reputation by reducing landfill waste, improving soil health, and working to enhance the broader ecosystem around egg farming.

While we acknowledge the risk and potential of VITL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VITL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.