Benzinga - by Priya Nigam, Benzinga Staff Writer.
BofA Securities analyst Robert Ohmes upgraded the rating for Sprouts Farmers Market Inc (NASDAQ: SFM) from Underperform to Buy.
Ohmes also raised the price target from $30 to $70.
The upgrade comes after Sprouts confirmed that over 15,000 of its products would be available for delivery on Uber Eats, Uber Technologies Inc's (NYSE: UBER) food delivery platform.
The company had also pivoted to a higher store growth rate of around 9% and is likely to return to a more than 10% target by 2025.
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The Sprouts Farmers Market Thesis: The company enjoys a “unique specialty position in Food Retail,” Ohmes said in an upgrade note.
“We believe SFM has moved beyond traffic challenges that followed changes in its promo... strategy, with now higher margins [and] a regrowing customer base,” the analyst wrote.
Sprouts Farmers Market currently operates over 400 stores, while competition is easing due to its “increasingly differentiated assortment of attribute-based (organic, grass-fed, vegan, keto) products,” he added.
Following the company’s strong fourth-quarter results, the earnings estimate for 2024 has been raised by 15 cents to $2.90 per share, Ohmes further stated.
SFM Price Action: Shares of Sprouts Farmers Market had risen by 1.73% to $61.38 at the time of publication Tuesday.
Image: Courtesy of Sprouts Farmers Market
Latest Ratings for SFM
| Feb 2022 | Deutsche Bank | Maintains | Buy | |
| Feb 2022 | Credit Suisse | Maintains | Neutral | |
| Feb 2022 | Deutsche Bank | Maintains | Buy |
View the Latest Analyst Ratings
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