Morgan Stanley Reiterates "Equal Weight" Rating for Vital Farms

Analysts cut price target from $45 to $24 amid mixed Q4 results

Published on Feb. 27, 2026

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Morgan Stanley has reiterated its "equal weight" rating on shares of Vital Farms (NASDAQ:VITL), while lowering its price target from $45 to $24. This comes after the company reported mixed Q4 results, with revenue beating expectations but earnings per share missing consensus estimates.

Why it matters

Vital Farms is a leading producer of pasture-raised eggs and dairy products, appealing to health-conscious consumers. The company's stock has seen significant volatility recently, with the latest analyst actions reflecting uncertainty around its near-term growth prospects.

The details

In its research note, Morgan Stanley cited Vital Farms' Q4 revenue growth of 28.6% year-over-year to $213.6 million, which slightly exceeded the $212.8 million consensus. However, the company's GAAP earnings per share of $0.35 missed the expected $0.38, leading to the price target reduction. Additionally, Vital Farms provided fiscal year 2026 revenue guidance of $900 million to $920 million, which some analysts view as conservative compared to certain street models.

  • Vital Farms reported its Q4 2025 results on February 26, 2026.
  • Morgan Stanley issued its research note and updated rating on February 27, 2026.

The players

Vital Farms

A U.S.-based food company specializing in pasture-raised egg and dairy products, traded on the NASDAQ under the symbol VITL.

Morgan Stanley

A global financial services firm that provides investment banking, securities, wealth management and investment management services.

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The takeaway

Vital Farms' mixed Q4 results and the subsequent analyst actions highlight the ongoing challenges and uncertainty facing the company as it navigates a competitive market for ethically-sourced food products. Investors will be closely watching the company's ability to execute on its long-term growth strategy and maintain its appeal to health-conscious consumers.