DA Davidson Downgrades Vital Farms (VITL) to Neutral

DA Davidson analyst Brian Holland downgraded Vital Farms (NASDAQ: VITL) from Buy to Neutral with a price target of $16.00 (from $47.00).

The analyst comments "We are downgrading VITL from Buy to NEUTRAL and lowering our price target from $47 to $16. While we are loath to downgrade on such weakness, and so close to the print, we can't defend the stock into this setup. Increased egg supply has weighed on prices, just as the company accelerated supply & capacity expansion efforts; meanwhile, brand equity has taken a hit and management appears poised to guide down for the third time in six months. To be sure, we think current headwinds are more likely cyclical -- but it may well be early in the cycle, so we are moving to the sidelines."

For an analyst ratings summary and ratings history on Vital Farms click here. For more ratings news on Vital Farms click here.

Shares of Vital Farms closed at $14.18 yesterday.

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