Freshpet Inc. (FRPT), a leading provider of fresh, refrigerated pet food, saw its stock surge 6.93% in pre-market trading on Monday. The significant price movement came after Jefferies analyst Kaumil Gajrawala upgraded the stock to a "Buy" rating with a price target of $150, citing the company's promising growth prospects and scalability.

Gajrawala's positive outlook on Freshpet is driven by the increasing consumer demand for premium and fresh pet food products, a trend that positions the company well to capitalize on this growing market segment. Freshpet's innovative approach to pet food, emphasizing natural, refrigerated ingredients, has resonated with pet owners seeking high-quality, nutritious options for their furry companions.

Additionally, the analyst highlighted Freshpet's scalability as a key driver for future growth. With the company's expanding production capabilities and distribution network, it is well-positioned to support its continued expansion and gain further market share in the premium pet food market. Gajrawala noted that Freshpet's Apollo Go robotaxi service is expected to break even in Wuhan in 2024 and be profitable in 2025 with an increase in its fleet in the city.