Vital Farms Analyst Foresees $1 Billion Sales Path On Surging Egg Demand

Next-gen food company Vital Farms, Inc. VITL is disrupting the traditional food ecosystem and has "successfully differentiated its brand and products," especially in pasture-raised eggs, according to Telsey Advisory Group.

The Vital Farms Analyst: Analyst Sarang Vora initiates coverage of Vital Farms with an Outperform rating and price target of $52.

The Vital Farms Thesis: The demand for eggs is likely to continue rising due to their affordability and health benefits, Vora said in the initiation note.

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Within this category, there is likely to be "outsized growth" in pasture-raised eggs, as consumers increasingly shift to "natural, healthy, and ethically sourced products," the analyst stated.

"Vital Farm's leadership in the pasture-raised egg category and its farm-to-table digital traceability should help," he added.

The company's sales are expected to grow at an annual growth rate of 19% to 20%, hitting the $1 billion mark in 2027, versus $600 million in 2024, Vora said. "Drivers of the growth include favorable industry trends and strategic initiatives, like higher household penetration, strong loyalty, expansion of SKUs and shelf-space at existing retail, and new account wins in retail and foodservice channels," he wrote.

VITL Price Action: Shares of Vital Farms had risen by 1.6% to $43.79 at the time of publication on Monday.

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