Freshpet, Inc. (FRPT) recently received an upgrade from Morgan Stanley, with analyst Eric Serotta raising the rating to Overweight as of February 24, 2026. This rating shift is particularly noteworthy, given the stock’s current price of $80.89, which is positioned below the new price target of $90. Such an adjustment could indicate a fresh wave of optimism surrounding Freshpet’s operational outlook and growth prospects, making it a stock worth watching for both current and prospective investors.
Recent Price Action
Over the last few trading sessions, Freshpet’s stock has shown a positive trend, recently changing by $2.31, or approximately 2.93%. The stock currently trades at $80.89, comfortably situated above its 52-week low of $72.99 but still significantly below its 52-week high, which reflects a decrease of 27.53%. The trading volume has surged to 2,578,105 shares, a notable increase when contrasted with its average volume of 1,186,576 shares. This uptick not only highlights increased investor interest but also contributes to a market capitalization of approximately $3.95 billion. However, the stock’s beta of 1.72 suggests a level of volatility above the market average, underscoring Freshpet’s potential for larger price swings.
Short- and Long-Term Performance
In assessing the short- and long-term performance, Freshpet’s stock has exhibited somewhat mixed results. Over the past 30 days, the stock has appreciated by about 4.3%, following a strong quarterly performance of 31.94%. Yet, this uptick contrasts starkly with a troubling annual performance, showing a decline of 56.33%. Monthly volatility at 3.73% and weekly volatility at 4.39% indicate that while the stock can provide short-term gains, it remains subject to significant fluctuations that could impact investor sentiment.
Earnings Analysis
Freshpet’s most recent earnings report further reinforces its case for investor interest. The company reported earnings per share (EPS) of $1.82 on November 3, 2025, a remarkable jump over the estimated EPS of $0.43, resulting in a substantial earnings surprise factor of 323.3%. This marks a significant improvement from its previous quarter, where it posted an EPS of $0.33 against an estimate of $0.12, yielding a 175% surprise. Such consistent positive surprises can bolster investor confidence, indicating a robust financial future and effective operational strategies.
Analyst Consensus View
The consensus outlook for Freshpet remains cautiously optimistic. According to recent ratings, the stock garnered a total of 12 ratings, with 7 classified as Buy and 5 as Hold, while no Sell ratings have emerged. The average price target is currently pegged at $78.50, yet this figure is offset by a high target of $90—indicating a significant potential upside. The low target of $61 suggests that analysts still acknowledge potential risks; however, the upward adjustment to Overweight by Morgan Stanley provides a strong signal amidst a backdrop of confidence in the company’s growth trajectory.
Stock Grading or Fundamental View
The Stocks Telegraph Grade for Freshpet, Inc. currently stands at 61, reflecting a moderate health score that takes into account multiple financial and market analysis metrics. This score suggests that while the company’s fundamentals are not at their peak, they are stable enough to merit a closer look from investors evaluating stocks with potential for recovery or growth. The mix of strong earnings, a positive analyst rating upgrade, and a somewhat encouraging price target suggests Freshpet’s innovative products might appeal to a growing market segment in the pet food industry.
Conclusion
For investors considering Freshpet, Inc. (FRPT), the recent rating upgrade and the potential for upside make it an intriguing opportunity, particularly for those focused on long-term growth. The risks, including high volatility and a significant yearly decline, must be acknowledged; nevertheless, the company’s recent earnings performance and positive analyst sentiment warrant further investigation. Freshpet’s positioning within the innovative segment of the pet food market, coupled with broader market trends favoring premium products, enhances its attractiveness as a growth-oriented investment. As always, potential investors should weigh these factors against their own risk profiles and investment objectives before making any decisions.