Why the cost stock jumped on Monday

New mocker (Nasdaq: Frpt) Actions reversed the course today after a clear drop at the end of last week. The fourth and healthy pet food seller said the fourth quarter on Thursday and an annual year and the stock landed.

But with the action down now by about 30% over a year, a Wall Street company just said it was time to buy. The shares jumped more than 7.5% on Monday morning on the analyst’s note and remained higher from 4.3% to 11 a.m.

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Can the cost stock skyrocketing 50%?

Investors crushed the stock at the end of last week when the company has slightly exceeded the expectations of Wall Street for its sales and profits in the fourth quarter. But the shares had been down since the start of the year, investors have made profits after a huge gain of 70% in 2024.

Expectations seemed to become too high, too fast. However, the company works well. Last year, sales jumped more than 27%, the gross margin increased significantly and the net cash provided by operating activities more than doubled compared to the previous year.

The recent decline offers an opportunity to purchase, say analysts to Jefferies. The company has improved actions to a purchase note and thinks that the action will reach $ 150 per share, according to reports. This implies a gain of 50% of the fence price on Friday.

Freshpet Management has provided an optimistic perspective, predicting that more than 20% sales again in 2025. Analysts estimate that growth prospects, as well as the recent decrease in shares, are reasons to buy action at its current level.

Animal owners are increasingly attracted by the idea of ​​fresh and healthier foods. Freshpet on the scale of his business accordingly. CEO Billy Cyr noted as such at the Conference Conference of the company last week. Cyr said: “Over the next two years, we are planning other important locations of new refrigerators that could provide similar advantages on visibility and availability and help us achieve our long -term net sales objectives.”

As the placement of products is developing, Freshpet’s activities should continue to grow. Investors who see the Fresh pet food category which continues to resonate with animal owners could find the recent drop in a convincing opportunity.

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Howard Smith has no position in the actions mentioned. The Motley Fool has positions and recommends Freshpet and Jefferies Financial Group. The Motley Fool has a policy of disclosure.

The opinions and opinions expressed here are the opinions and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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