Freshpet (FRPT) Upgraded to Outperform by Oppenheimer

Freshpet Inc. (NASDAQ:FRPT) is one of the 7 best mid-cap consumer defensive stocks to buy.

On March 20, Oppenheimer upgraded Freshpet Inc. (NASDAQ:FRPT) from Perform to Outperform. The firm set a target price of $80 for the stock, implying an almost 24% upside. The move follows a recent pullback driven by competition concerns from Costco’s (COST) Kirkland brand, but Oppenheimer sees a more attractive risk/reward at current levels.

The firm also expressed confidence in the company’s ability to stabilize sales growth and highlighted potential upside from strategic interest or a possible takeout over time.

Back on February 24, Todd Brooks from Benchmark increased the price target on Freshpet Inc. (NASDAQ:FRPT) from $80 to $90. The analyst maintained a Buy rating on the stock, which offers more than 39% potential upside at the current level.

According to Brooks, the fourth quarter figures reflect model stabilization, which shows that the Freshpet brand and the larger pet food market are growing at a slower rate. In a difficult consumer environment, the firm continues to emphasise 8%–10% topline growth and the capacity to keep increasing margins.

Freshpet Inc. (NASDAQ:FRPT) produces and sells natural meals and treats for pets, predominantly covering cats and dogs. The company markets its offerings under different brands, including Freshpet, Dognation, and Dog Joy. It sells its products through company-owned refrigerators and different types of retail outlets.

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