Vital Farms: Near-Term Hiccups, Long-Term Potential
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The Value InvestorInvesting Group LeaderFollow5ShareSavePlay(10min)CommentsSummaryVital Farms, Inc. maintains robust growth, leveraging ethical branding and supply chain advantages to deliver strong sales and margin expansion.VITL's 2025 guidance remains solid despite temporary ERP disruptions, with ambitious 2030 targets of $2 billion in sales and 15–17% EBITDA margins.VITL shares currently trade at about 20x earnings (ex-cash), with resilient fundamentals and a strong net cash position supporting further upside.I view the recent VITL share price weakness as a buying opportunity, reinstating a full position on improved risk-reward and credible long-term growth. Kathrin Ziegler/DigitalVision via Getty Images Over the summer, I concluded that Vital Farms, Inc. (VITL) was riding supply chain constraints. The strong brand and ethical focus have driven sales and margin growth, with the company actively benefiting from continuedThis article was written byThe Value Investor27.41K FollowersFollowThe Value Investor has a Master of Science with specialization in financial markets and a decade of experience tracking companies via catalytic company events. As the leader of the investing group Value In Corporate Events they provide members with opportunities to capitalize on IPOs, mergers & acquisitions, earnings reports and changes in corporate capital allocation. Coverage includes 10 major events a month with an eye towards finding the best opportunities. Learn more.Analyst’s Disclosure:I/we have a beneficial long position in the shares of VITL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.