Jefferies Starts Sprouts Farmers Market (SFM) at Hold

Jefferies initiates coverage on Sprouts Farmers Market (NASDAQ: SFM) with a Hold rating and a price target of $22.00.

Analyst Mark Wiltamuth commented, "We view Sprouts' low-price natural/organic business model as a long-term winner, but competitor discounting, produce deflation and margin drag from young stores are weighing on near-term results. With demand for natural/organic food broadening out to the middle class, Sprouts' low prices position it to capture these new customers. While we only see 11% growth in 2015, with self-funded 14% store growth, SFM should deliver 18-20% EPS growth over the long-term."

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 $19.87 yesterday.

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