Once Upon a Farm faces longer-term disruptions from recall, double downgrade at BofA

What happened

BofA Securities analyst Peter Galbo double-downgraded Once Upon a Farm to Underperform from Buy and cut his price target 52% to $10, after a recall of soft-baked bars due to a choking hazard.

Confirmed

Global impact / market context

The brand was built on parental trust in quality, so the recall threatens more than lost sales: rebuilding trust and reformulating products could take a year, while retailer support and shelf space may shrink, weighing on growth.

Analyst inference

Investors face a company whose recovery path is longer and less predictable than a simple sales hit, with possible spillover across the broader portfolio and added costs from refunds and retailer fees.

Analyst inference

What to watch

1. Watch how long Tractor Wheels bars stay unavailable, since lost sales and profits continue while the product is off shelves. Confirmed
2. Track retailer support and shelf space, because weaker retailer backing could make new distribution harder and slow broader growth. Analyst inference
3. Monitor refund costs, potential retailer fees for removing affected products, and reformulation progress, which affect cash available and recovery timing. Analyst inference

Evidence

• seekingalpha.com