RBC Capital Reiterates Outperform Following Sprouts Farmers Market's (SFM) Strong 4Q
RBC Capital reiterated an Outperform rating and $33.00 price target on Sprouts Farmers Market (NASDAQ: SFM) following the company's 4Q earnings report. Sprouts delivered a strong comparable store sales beat (7.4% vs consensus of 5.7%), besting even the highest estimate on the Street. RBC believes "access" will drive the next leg of growth in the specialty natural/organic segment.
Analyst William Kirk commented, "Sprouts reminded investors what their comparable stores sales can look like with just a little inflation. Comp ex-inflation continues to run at over 6%, setting the table for HSD potential if/when inflation returns to normal levels. We believe FY16 guidance is achievable/ beatable and strategic initiatives, combined with a defensible business model, will lead to continued strong share gains. Reiterate Outperform and $33 PT."
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Shares of Sprouts Farmers Market closed at $27.43 yesterday.