BofA Securities Double Upgrades Sprouts Farmers Market (SFM) to Buy 'on traffic, margin & unit growth outlook'

BofA Securities analyst Robert Ohmes upgraded Sprouts Farmers Market (NASDAQ: SFM) from Underperform to Buy with a price target of $70.00 (from $30.00).

The analyst comments "We upgrade SFM to Buy from U/P and raise our PO to $70 (was $30) based on 22x (was 1lx} cur raised 202SE EPS of $3.15 (was $2.95). Our higher multiple reflects SFM's shift Id a higher store growth rate (-9% unit growth, with return to +10% target by 2SE} higher sustained gross margin Outlook (37%+ for SFM today vs. 2 1-23% and 27-29% for KR & ACI, respectively- Exhibit 7) and unique specialty position in Food Retail."

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 $60.34 yesterday.

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