Piper Jaffray Remains Neutral on Sprouts Farmers Market (SFM) Headed into 2H15
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Rating Summary:
10 Buy, 21 Hold, 5 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 11 | Down: 13 | New: 17
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Piper Jaffray maintained a Neutral rating and $25.00 price target on Sprouts Farmers Market (NASDAQ: SFM) headed into the company's 2H of 2015. Analyst Sean Naughton believes that accelerated basket growth excluding inflation/deflation, a moderating produce environment (~26% of total sales), good relative valuation on a PEG basis, opportunity to increase productivity and sales initiatives are all positives for SFM shares.
Naughton commented, "This morning we are out to preview Q3 as well as revisit some of the positive and negative points on the thesis for Sprouts shares. We believe accelerated basket growth excluding inflation/deflation, a moderating produce environment (~26% of total sales), good relative valuation on a PEG basis, opportunity to increase productivity and sales initiatives are all positives for SFM shares. However, given the largest competitor in the space is likely going to lower prices and we have a significant amount of competition in the sector, we believe the shares warrant a Neutral rating despite the likelihood of high teens EBITDA growth."
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 $22.94 yesterday.
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