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TD Cowen Reduces PT on Vital Farms (VITL) to $44 From $59

Vital Farms, Inc. (NASDAQ:VITL) is one of the best small cap stocks to buy with huge upside potential. On December 18, TD Cowen analyst Robert Moskow slashed the price target on Vital Farms, Inc. (NASDAQ:VITL) to $44 from $59 while reiterating a Buy rating on the stock.

The firm told investors that it attended the company’s investor day, where Vital Farms, Inc. (NASDAQ:VITL) established an aggressive $2 billion sales target for 2030, supported by unlocking of capacity constraints, rising brand awareness, growing household penetration, and expansion of shelf space. However, the firm added that the company’s 2025 guidance cut added to market concerns regarding susceptibility to an increasingly price sensitive consumer and crowded premium egg category.

In another development, Morgan Stanley cut the price target on Vital Farms, Inc. (NASDAQ:VITL) to $45 from $48 on December 17, and maintained an Overweight rating on the stock. The firm told investors that Vital Farms, Inc. (NASDAQ:VITL) updated its long-term algorithm with above-consensus targets at its investor day. However, this was overshadowed according to the analyst, and the previous day’s stock reaction was driven by an “unexpected” 2025 revenue guidance cut. Still, the firm sees the event as providing additional visibility into “a long, underappreciated growth runway.”

The rating updates came after Vital Farms, Inc. (NASDAQ:VITL) announced on December 16 that it updated its long-term financial targets, and expects a multi-year path toward a net revenue of $2 billion by 2030, and 15% to 17% adjusted EBITDA margins by 2030. In addition, the company expects gross margins of 35+% between 2025 and 2030 as it continually drives expands household penetration and brand loyalty, increases brand awareness, continues scaling of its supply chain, and deepens distribution, establishing 2030 as its new long-term planning horizon.

Vital Farms, Inc. (NASDAQ:VITL) packages, markets, and distributes pasture-raised butter, shell eggs, and other products. It sells its products primarily to retail food service channels under the trade names Vital Farms, Alfresco Farms, Lucky Ladies, and RedHill Farms.

While we acknowledge the potential of VITL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VITL and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

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  • 175 Teslas
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  • 140 Metas
  • 84 Googles
  • 65 Microsofts
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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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