03:33 PM EDT, 03/20/2026 (MT Newswires) -- Freshpet's ( FRPT ) management team appears capable of stabilizing the company's sales trends even as new competition emerges, Oppenheimer said Friday in a client note.

The brokerage is modeling top-line growth of 9.1% for 2026 and 8.5% for 2027 for the pet food company. Last month, Freshpet ( FRPT ) reported a 13% jump in 2025 sales to $1.1 billion, driven by volume gains and a combination of higher prices and better mix.

Costco Wholesale ( COST ) recently launched Kirkland Signature's fresh dog food product, which likely has a lower price point than Freshpet's ( FRPT ) offering, Oppenheimer said.

However, Freshpet's ( FRPT ) "leading portfolio and product quality" should help it compete with what appears to be a "formidable" competitor, according to Oppenheimer analysts, including Rupesh Parikh.

"We are increasingly confident in management's ability to stabilize top-line trends, at least in the high single digits, even with new competition," Parikh wrote.

Oppenheimer upgraded its rating on the stock to outperform from perform, setting a price target of $80.

The upgrade also took into account "a more attractive" valuation following the stock's recent pullback, Parikh said. It slid nearly 11% on Tuesday, which Oppenheimer attributed to worries about competition from the Kirkland Signature brand.

The stock was up 1.5% in Friday afternoon trade, and has risen 5.3% since the start of the year. Shares have declined 26% from a recent high earlier this month, compared with a 4% decrease in the S&P 500, Parikh said.

"In the current tape, we believe it's harder to call a bottom, so we would take advantage of any potential dips," Parikh said.

The upgrade comes a year after Oppenheimer downgraded Freshpet ( FRPT ) amid concerns about a growth slowdown and limited visibility around the company's ability to stabilize sales.

Oppenheimer on Friday flagged the possibility of a potential acquisition of Freshpet ( FRPT ).

"We continue to view (Freshpet ( FRPT )) as a takeout candidate longer term," Parikh wrote. "Both pet food manufacturers and retailers have clearly shown a growing interest in the category"

Price: 63.84, Change: +0.67, Percent Change: +1.06