Freshpet Stock Tumbles on Analyst Downgrade, CFO Departure
BofA Securities cites slowing growth and rising competition as it cuts its rating, compounding news of a key executive transition.
Shares of Freshpet (FRPT) tumbled more than 6% in recent trading following a double blow of a key executive's departure and a bearish turn from Wall Street. Bank of America Securities , citing a challenging outlook for the pet food maker.
The downgrade was accompanied by a significant price target reduction to $60 from a previous $81. The BofA analyst report pointed to several headwinds, including a slowdown in pet spending, easing adoption rates following the pandemic-era boom, and a more crowded competitive landscape in the fresh pet food category.
Compounding the negative market sentiment, the company simultaneously , Todd Cunfer, who will leave in October 2025. While Freshpet has appointed an interim CFO and initiated a search for a permanent replacement, the leadership uncertainty adds another layer of concern for investors.
The analyst's concerns reflect broader shifts in the market. A trend towards smaller dogs, which consume less food, and a rise in cat adoptions are creating challenges for Freshpet's sales volumes. These , coupled with higher input costs, are squeezing the company's growth prospects and profitability.
In an effort to calm investor nerves amidst the executive transition, Freshpet did reaffirm its fiscal year 2025 financial outlook. However, the combination of the analyst downgrade and the CFO change has presented a clear challenge for the company, forcing investors to re-evaluate its growth trajectory in an increasingly competitive market.