Vital Farms should be bought on recent pullback, says Jefferies

Jefferies analyst Rob Dickerson lowered the firm’s price target on Vital Farms (VITL) to $41 from $45 and keeps a Buy rating on the shares. After having hosted investor meetings with Vital Farms’ Founder and Executive Chairman Matt O’Hayer, CEO Russell Diez-Canseco, and CFO Thilo Wrede, the firm says the conversations supported Jefferies’ conviction in the long-run potential of the company and the view that near-term capacity constraints should be short-lived. Vital’s stock dropped about 11% last week off a Q3 volume miss and commentary around capacity constraints, but coming out of investor meetings this past Friday, the firm says it foresees 20%-plus sales growth over the next two to three years and recommends buying the stock on the recent pullback.