Freshpet (FRPT 6.67%) shares are reversing course today after a sharp drop late last week. The seller of fresh and healthy pet food reported fourth-quarter and full-year earnings on Thursday and the stock tanked.

But with the stock now down about 30% year to date, one Wall Street firm just said it's time to buy. Shares jumped more than 7.5% Monday morning on the analyst note, and remained higher by 4.3% as of 11 a.m. ET.

Can Freshpet stock soar 50%?

Investors crushed the stock late last week when the company came up slightly short of Wall Street's expectations for its fourth-quarter sales and earnings. But shares had already been trending lower since the start of the year as investors took profits after a huge 70% gain in 2024.

Expectations seemed to just get too high, too fast. The company is performing well, though. Last year sales jumped more than 27%, gross margin meaningfully increased, and net cash provided by operating activities more than doubled versus the prior year.

The recent pullback provides a buying opportunity, say analysts at Jefferies. The firm upgraded shares to a buy rating and thinks the stock will reach $150 per share, according to reports. That implies a gain of 50% from Friday's closing price.

Freshpet management provided an optimistic outlook, predicting sales jumping more than 20% again in 2025. The analysts believe that growth outlook, along with the recent stock decline, are reasons to buy the stock at its current level.

Pet owners are becoming increasingly attracted to the idea of fresh and healthier foods. Freshpet is scaling its business accordingly. CEO Billy Cyr noted as such in the company's quarterly conference call last week. Cyr stated, "Over the next two years, we anticipate other significant new fridge placements that could provide similar visibility and availability benefits and help us achieve our long-term net sales goals."

As product placement expands, Freshpet's business should continue to grow. Investors who see the fresh pet food category continuing to resonate with pet owners might find the recent drop a compelling opportunity.