topstockalerts
Nov 3, 9:10 PM
Once Upon A Farm shares extended their multi-day selloff following a nationwide voluntary recall of its Tractor Wheels toddler snack bars, announced on October 30 after an FDA warning that the product could form a dense, sticky mass when chewed, potentially creating a serious choking hazard.
Adding to the pressure, BofA Securities issued a double downgrade, cutting its rating from Buy to Underperform and slashing its price target from
$21 to
$10, citing the recall’s expected impact over the next 12 months and potential long-term damage to the brand. TD Cowen also lowered its price target from
$18 to
$13 while maintaining a Hold rating. The recalled product line accounts for approximately 18% of year-to-date net sales, and the company expects revenue disruption until shipments resume.
Although Once Upon A Farm reported approximately
$106M in cash and no outstanding debt as of September 30, investors remain concerned about lost sales and reputational damage.
$OFRM
0 replies