VITL Shares Slip 6% On Health Concerns Around Eggs: Analyst Dismisses ‘Misleading’ Information, Reiterates ‘Buy’ Rating

Several videos on Instagram are now calling for customers to stop buying Vital Farms eggs, citing health concerns and alleging that lab tests found soy, corn and linoleic acid.

• TD Cowen, however, kept a ‘Buy’ rating and $44 price target on Vital Farms.
• Most nutritionists view linoleic content - i.e. Omega-6 - as a positive, not a negative, because they provide important nutrients in a daily diet, the analyst said. 
• The negative videos on Instagram may not influence the brand's reputation longer term, though the firm can still see grounds for concern that they may augment near-term challenges.

Shares of Vital Farms (VITL) slumped 6% in the regular trading session but slipped into the green territory after hours after analyst TD Cowen dismissed social media criticism pertaining to the company.  

Several videos on Instagram are now calling for customers to stop buying Vital Farms eggs, citing health concerns and alleging that lab tests found soy, corn, and linoleic acid.

Analyst Dismisses Concerns

TD Cowen, however, kept a ‘Buy’ rating and $44 price target on Vital Farms. While VITL stock pulled back 6% in response to a wave of negative social media commentary on Instagram about the company's nutritional value, the firm sees these criticisms as "highly unwarranted and misleading," Cowen said.

Most nutritionists view linoleic content, i.e. Omega-6, as a positive, not a negative, because they provide important nutrients in a daily diet, and like every other pasture-raised egg company, the brand has always been transparent about feeding their hens a diet of corn and soybean meal as a course of business, the analyst said in a research note, according to TheFly.

The negative videos on Instagram may not influence the brand's reputation longer term, though the firm can still see grounds for concern that they may augment near-term challenges, TD Cowen added.

Goals And Aims

Vital Farms, started in 2007 in Texas, provides shell eggs, butter, hard-boiled eggs, and liquid whole eggs, which are sold in over 23,000 stores across the U.S. Last month, the company set a $2 billion net revenue target by 2030 and 15% to 17% adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margins by then.

For 2025, the company expects net revenue of $755 million to $765 million and adjusted core profit of over $115 million. This is expected to increase to net revenue of $930 to $950 million in 2026 and further until it touches $2 billion in 2030.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around VITL stock fell from ‘neutral’ to ‘bearish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘high’ levels.

On Stocktwits, a user echoed popular health concerns.

Another, however, sees the company hit back at the allegations with a statement that rekindles the share price.

VITL stock dropped 37% over the past 12 months. 

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