Sprouts Farmers Market (SFM) PT, Est. Lowered at Jefferies on Disappointment; Long-Term Story Remains

November 4, 2016 8:35 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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Jefferies analyst Christopher Mandeville lowered estimates and his price target on Sprouts Farmers Market (NASDAQ: SFM) to $23.00 (from $24.00) but maintained a Buy rating. The analyst said the long-term story remains.

Mandeville commented, "The 3Q print was a mixed bag with solid comps but weak margins/earnings. Additionally, while the low-end of comp guidance was raised, this still implies worsening 4Q trends. With any high multiple name, an earnings miss is expected to be met with disapproval; however, we view the reaction as overdone and given our belief in SFM's solid 10-12% L-T EBITDA growth, we believe shares can rerate higher once elevated cannibalization/deflation/elevated promos abate."

The firm trimmed Q4 EPS from $0.14 to $0.13, FY16 from $0.86 to $0.85 and FY17 from $0.97 to $0.92.

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 $20.03 yesterday.

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