Once Upon A Farm (NYSE:OFRM) Cut to Underperform at Bank of America

Key Points

• Bank of America downgraded Once Upon A Farm from “buy” to “underperform” and set a $10 price target, implying roughly 7.8% upside from the prior close.
• Analyst sentiment is mixed: five analysts rate the stock a Buy, five a Hold and two a Sell, producing an overall “Hold” rating and an average price target of $23.94.
• Shares opened at $9.27 after falling sharply from a 52-week high of $27.00. Recent pressure has been linked to a nationwide snack-bar recall over a potential choking hazard, with investors also facing possible recall costs, reputational damage and litigation risk.

Once Upon A Farm (NYSE:OFRM - Get Free Report) was downgraded by research analysts at Bank of America from a "buy" rating to an "underperform" rating in a research note issued on Tuesday, Briefing.com reports. They currently have a $10.00 price target on the organic kids food company's stock. Bank of America's price objective would suggest a potential upside of 7.83% from the stock's previous close.

A number of other research analysts have also commented on the stock. TD Cowen decreased their price target on shares of Once Upon A Farm from $20.00 to $18.00 and set a "hold" rating on the stock in a research note on Tuesday, October 13th. Weiss Ratings upgraded shares of Once Upon A Farm from a "sell (e)" rating to a "sell (e+)" rating in a research note on Monday. Barclays increased their price target on Once Upon A Farm from $18.00 to $19.00 and gave the stock an "equal weight" rating in a research report on Monday, August 10th. Freedom Broker started coverage on Once Upon A Farm in a research note on Thursday, October 8th. They set a "buy" rating and a $24.50 price objective on the stock. Finally, JPMorgan Chase & Co. upped their target price on Once Upon A Farm from $22.00 to $26.00 and gave the company an "overweight" rating in a research report on Friday, August 7th. Five analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, Once Upon A Farm has an average rating of "Hold" and an average price target of $23.94.

Once Upon A Farm Stock Performance

Shares of Once Upon A Farm stock opened at $9.27 on Tuesday. Once Upon A Farm has a 52-week low of $9.07 and a 52-week high of $27.00. The business's 50 day simple moving average is $16.47 and its 200 day simple moving average is $17.46. The firm has a market cap of $389.42 million and a PE ratio of -25.76.

Once Upon A Farm (NYSE:OFRM - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The organic kids food company reported ($0.12) EPS for the quarter, topping the consensus estimate of ($0.18) by $0.06. The business had revenue of $85.39 million for the quarter. As a group, equities research analysts predict that Once Upon A Farm will post -0.22 EPS for the current year.

Institutional Trading of Once Upon A Farm

A number of institutional investors and hedge funds have recently made changes to their positions in the company. State Street Corp bought a new position in shares of Once Upon A Farm in the 2nd quarter valued at $3,395,000. BlackRock Inc. raised its holdings in shares of Once Upon A Farm by 225.9% during the 2nd quarter. BlackRock Inc. now owns 859,180 shares of the organic kids food company's stock worth $17,596,000 after buying an additional 595,571 shares in the last quarter. Nicholas Investment Partners LP lifted its position in shares of Once Upon A Farm by 271.9% during the 2nd quarter. Nicholas Investment Partners LP now owns 784,166 shares of the organic kids food company's stock worth $16,060,000 after buying an additional 573,285 shares during the last quarter. Alyeska Investment Group L.P. bought a new stake in shares of Once Upon A Farm during the 2nd quarter worth $10,240,000. Finally, Lisanti Capital Growth LLC bought a new stake in shares of Once Upon A Farm during the 2nd quarter worth $1,665,000.

Once Upon A Farm News Roundup

Here are the key news stories impacting Once Upon A Farm this week:

• Neutral Sentiment: The company held a shareholder and analyst call, but the available reports do not identify a new operating or financial catalyst that would offset the recall-related concerns. Shareholder/Analyst Call Transcript
• Negative Sentiment: Once Upon A Farm’s snack bars were recalled nationwide over a potential choking hazard, following reports involving toddlers. Coverage characterized the risk as potentially fatal, increasing the possibility of lost sales, product-recall expenses, retailer disruption and damage to consumer trust. Snack Bars Recalled Over Choking Hazard
• Negative Sentiment: Additional market coverage linked the sharp decline in OFRM to the recall, indicating investors are pricing in heightened uncertainty around the company’s products and near-term performance. Jennifer Garner’s Once Upon a Farm Stock Sinks on Product Recall
• Negative Sentiment: The Law Offices of Frank R. Cruz announced an investigation into potential securities-law violations related to the company’s disclosures on November 2. The announcement does not establish wrongdoing, but it adds litigation risk and may further pressure investor sentiment after the product-safety news. Securities Fraud Investigation Announcement

About Once Upon A Farm

Once Upon a Farm is a U.S.-based food company focused on organic, refrigerated foods for babies, children and families. Its products are designed around fruits, vegetables and other minimally processed ingredients.

The company's offerings have included refrigerated baby food pouches, toddler meals, kids' snacks, smoothies and other family-oriented products. Once Upon a Farm distributes its products through grocery retailers, mass merchants and online channels in the United States.

The company was founded in 2015 by Cassandra Curtis, Ari Raz and John Foraker, with actress and entrepreneur Jennifer Garner joining as a co-founder and brand partner.

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