BofA Securities Downgrades Once Upon a Farm After Product Recall

BofA Securities downgraded the stock rating of Once Upon a Farm from Buy to Underperform and reduced its price target from $21.00 to $10.00. The move follows a voluntary product recall of the company's Tractor Wheels product, which represents approximately 18% of Once Upon a Farm's net sales.

Analysts at BofA Securities warned that the recall and the necessary reformulation of the product could damage parental trust in the brand. This loss of confidence may lead to a prolonged recovery period and create negative spillover effects across the company's broader product portfolio over the next 12 months.

Once Upon a Farm shares closed at $9.44, reflecting a 41% decline over the past week. The stock volatility comes despite strong recent financial performance, including a 42.3% increase in second-quarter sales to $85.4 million. The company previously raised its full-year 2026 net sales guidance to a range between $327 million and $335 million.

Once Upon a Farm is expected to provide further updates regarding the situation during its third-quarter fiscal 2026 results report scheduled for November 12.