Barclays Upgrades Sprouts Farmers Market (SFM) to Overweight

Barclays analyst Karen Short upgraded Sprouts Farmers Market (NASDAQ: SFM) from Equalweight to Overweight with a price target of $185.00 (from $173.00).

The analyst commented: "We upgrade SFM to OW from EW: 1) Multi-year trends are holding steady with optionality for upside; 2) Incremental sales drivers such as loyalty (first signs expected in Q4), e-commerce still ramping (significantly on multi-year basis), along with strong new store cohort performance, and underlying strength in the category, support upside to sales; 3) Gross margin is healthy and gains could continue; SG&A still elevated should start to normalize (implied step down for Q4 bodes well for outlook); 4) Some confusion on current trends also provide an opportunity; we believe the company could be tracking ahead Q3-to-date although we are monitoring a more difficult September compare. Bottom line, the growth story remains solid and we feel better about the EPS upside for FY26. See our recent initiation for more details on our view of the growth drivers for SFM."

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 $158.06 yesterday.

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