FreshPet Inc: Morgan Stanley cuts to equal-weight from overweight

Morgan Stanley has revised its rating for Freshpet Inc (NASDAQ:FRPT), downgrading to Equalweight, while maintaining a $90.00 price target. The adjustment follows Tractor Supply’s announcement of plans to expand its fresh and frozen pet food offerings to over 250 stores by the end of May 2026, with a potential scale-up to 700 stores by year-end. Morgan Stanley noted that Freshpet is likely to account for the majority of this expansion, given its 95% fresh pet food share.

The firm highlighted that Freshpet’s recent partnership with a rural lifestyle retailer has been highly incremental, outside its footprint. However, Freshpet’s stock has underperformed in recent months, falling 13% since mid-March amid concerns over Costco’s entry into the refrigerated fresh pet food market.

Analyst sentiment remains mixed, with Stifel lowering its price target to $78 while maintaining a Buy rating, and DA Davidson raising its target to $101, also with a Buy rating. Meanwhile, JP Morgan $72 price target with an Overweight rating, and Morgan Stanley previously initiated coverage with Equalweight and $71 price target in July 2026. These developments underscore the evolving competitive landscape and investor expectations for Freshpet as it navigates market expansion and competitive pressures.