Freshpet sags after TD Cowen downgrades on slowing growth profile

Freshpet's FRPT.O shares down 4% at $79.74 early Weds after TD Cowen downgrades pet food maker to 'hold' from 'buy' on concerns about decelerating sales growth trends

FRPT shares on course to fall for fifth straight session

Brokerage cuts PT by $5 to $91 vs Wall Street median $117.50, per LSEG data

FRPT's refrigerated fresh dog food concept nearing a "saturation point" sooner than expected, TD Cowen says in note

TD Cowen analysts say their Nielsen data shows last 4-week sales growth decelerated to +12%, down from +14% and +21% in last 12-week and last 52-week periods, respectively

Household penetration growth slowed to 13% in Q1 2025 from 18% in 2024, they say

TD Cowen also points to activist investor Jana Partners disclosing 1.5% stake in FRPT earlier this month, saying Jana may still believe co should sell itself, but the analysts say they don't see a bid from a strategic acquirer materializing near term

In Aug, Jana revealed it liquidated a previous position in FRPT where it pushed for changes and reached a settlement a year earlier

With move on Weds, FRPT shares down 46% YTD vs ~0.5% fall in Nasdaq .IXIC