Vital Farms Stock Falls 6% as Price Target Slashed to $20
Vital Farms shares fell 6.04% to close at $12.59 after Craig-Hallum slashed its price target to $20 from $55 on intensified egg-market competition. The target cut reflects reduced fiscal 2026 guidance, aggressive competitor promotions and shelf-space constraints despite healthy consumer demand.
1. Stock Price Decline
Vital Farms shares closed at $12.59, marking a 6.04% decline from the prior trading session as investors reacted to renewed uncertainty and valuation concerns.
2. Analyst Price Target Reduction
Craig-Hallum lowered its price target to $20 from $55, citing intensified competition in the pasture-raised egg segment, widespread promotional discounts up to 50% and volatile retailer orders and inventory levels. The firm maintained a constructive long-term outlook based on healthy consumer demand and ongoing spring shelf resets, applying an 8.9x EV/EBITDA multiple to reduced fiscal 2027 estimates.