Freshpet (NASDAQ:FRPT) stock posted solid returns for investors last year and analysts see further upside in FRPT stock this year. FRPT stock rose 64% over the previous twelve months to $18 at present. Analysts, however, think that it has the potential to trade around $22 with its current valuations and financials numbers.

Institutional Investors have also been raising their stake in the Freshpet stock, amid its optimistic outlook. Schwab Charles Investment Management Inc. increased their stake in Freshpet by 11.8%, according to the latest 13F filing.

Source Image: finviz.com

The micro-cap company has the market capitalization of $634 million – with the 52-week trading range of $10.55 – $20.85. The company believes they have the potential to sustain 20% growth objective in the long-term.

FreshPet posted sales growth of 22% in the latest quarter, allowing it to achieve the full year sales guidance of 20%. The company also exceeded full-year adjusted EBITDA goal by the $1.7 million despite a 60% increase in advertising investment.

The Outlook Enhances the Price Uptrend for Freshpet

Higher investments in advertisement and a new store opening are supporting its aggressive sales growth strategy. The company ended last year with 18,004 stores, up 1,395 stores from 2016. The company expects its net sales to grow by 21% in 2018, compared to the previous year. Fiscal 2018 adjusted EBITDA is likely to increase by 14% year over year.

Billy Cyr, Freshpet’s Chief Executive Officer, said: “In 2018 we will leverage our key brand and marketing strengths which we expect to fuel an accelerated rate of growth and position us to achieve our longer-term 2020 financial objectives.”

>>United Guardian Plans to Offer Higher Returns to Investors

On the other hand, FreshPet holds a strong cash position to support its growth activities. It ended last year with $2.2 million of cash and cash equivalents and a $30.0 million revolving credit facility, while the company has no debt outstanding.

Featured Image: Twitter