Goldman Sachs Starts Sprouts Farmers Market (SFM) at Neutral, PT $33

September 10, 2013 8:08 AM EDT
Get Alerts SFM Hot Sheet
Price: $20.22 +1.51%

Rating Summary:
    14 Buy, 14 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
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Goldman Sachs initiated coverage on Sprouts Farmers Market (NASDAQ: SFM) with a Neutral rating and a price target of $33.00. Analyst Stephen Grambling noted the stock's premium valuation.

Analyst Stephen Grambling said, "We initiate coverage of Sprouts Farmers Market (SFM) – a rapidly growing value-oriented, specialty food retailer – with a Neutral rating and see 15% downside to our $33, 12-month price target. While we are attracted to SFM's long-term growth potential and competitive position, the market has quickly appreciated this growth with shares currently trading at 79X our NTM EPS estimates, a meaningful premium to the specialty peer group average of 42X [Natural Grocers (NYSE: NGVC) The Fresh Market (Nasdaq: TFM) and Whole Foods (Nasdaq: WFM)] Therefore, we would await a better entry point to potentially become more constructive, all else equal."

For an analyst ratings summary and ratings history on Sprouts Farmers Market click here. For more ratings news on Sprouts Farmers Market click here.

Shares of Sprouts Farmers Market closed at $39.03 yesterday.

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