Freshpet (FRPT) is likely to post in-line Q2, but fiscal 2025 guidance could move lower, UBS said in a Friday note.

The brokerage said it expects Freshpet's net sales growth guidance to move to 13.9% for 2025, compared with the current company outlook of 15% to 18%.

While marketing investments are expected to drive better growth in H2, UBS said it expects management to "walk back" expectations of 14% to 20% net sales growth in H2.

UBS expects the company to lower adjusted earnings before interest, taxes, depreciation, and amortization expectations. The brokerage modelled adjusted EBITDA of $190 million, at the low end of the company's $190 million to $210 million range.

The brokerage said it reiterated its sell rating on the stock and price target of $65 per share.

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