BMO Capital Maintains Positive Long-Term Outlook for Vital Farms (VITL) Despite Temporary 2025 Revision

Vital Farms Inc. (NASDAQ:VITL) is one of the oversold stocks to buy now. On December 18, BMO Capital analyst Benjamin Mayhew lowered the firm’s price target on Vital Farms to $50 from $60 and maintained an Outperform rating on the shares. Following the company’s Investor Day, BMO noted that while the company’s downward revision of its 2025 outlook is disappointing, the cut reflects temporary disruptions that have already been addressed. This recovery is supported by a 2026 outlook that remains in line with expectations and an achievable long-term revenue CAGR in the low 20% range.

A day before this rating, Morgan Stanley lowered its price target for Vital Farms Inc. (NASDAQ:VITL) to $45 from $48 while maintaining an Overweight rating. During the company’s recent investor day, management updated its long-term algorithm with targets that exceeded analyst expectations; however, this positive outlook was eclipsed by an unexpected cut to 2025 revenue guidance, which triggered a sharp sell-off in the stock.

On December 5, Needham initiated coverage of Vital Farms with a Buy rating and a $45 price target, identifying the stock as a compelling proposition within the consumer staples sector. The firm’s bullish outlook is driven by the company’s strong volume-driven earnings fundamentals, which stand out in a market where few peers offer similar growth prospects.

Vital Farms Inc. (NASDAQ:VITL) is a food company that packages, markets, and distributes shell eggs, butter, and other products in the US.

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