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UBS Says Future Estimates for Freshpet, Inc. (FRPT) Are Too High

Faheem Tahir

1 min read

In This Article:

Freshpet, Inc. (NASDAQ:FRPT) remains one of the 7 best future food stocks to buy according to analysts, reflecting its strong growth potential in the premium pet food market.

UBS Says Future Estimates for Freshpet, Inc. (FRPT) Are Too High; Gives a ‘Sell’ Rating

UBS Says Future Estimates for Freshpet, Inc. (FRPT) Are Too High; Gives a ‘Sell’ Rating

Amy Rene/Shutterstock.com

Citing concerns about overly optimistic growth expectations, UBS gave a ‘Sell’ rating to Freshpet stock with a $65 price target on June 16, 2025. The analyst called out the company’s top and bottom-line estimates as too high, which are in the mid-to-high teens growth range, as implied by its pricing. The analyst believes this will lead to valuation contraction.

Based on the company’s guidance for 2025, it projects 15%-18% revenue growth, which would result in $190-$210 million in adjusted EBITDA. Meanwhile, Freshpet, Inc. (NASDAQ:FRPT) surpassed analyst estimates in Q1 2025, where it reported an 18% YoY increase in sales and 45.7% growth in its adjusted gross margin.

Thus, Freshpet, Inc.’s (NASDAQ:FRPT) short-term performance is one to keep an eye on.

The company is a manufacturer and distributor of fresh food and treats for dogs and cats in the U.S., Canada, and Europe. It is one of the best future food stocks.

While we acknowledge the potential of FRPT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.