RBC Capital reiterated an Outperform rating and $33.00 price target on Sprouts Farmers Market (NASDAQ: SFM) ahead of the company's 2Q earnings report. After conducting quarterly work on Sprouts, RBC is lowering comparable store estimates to +4.2% compared to consensus' 4.5%. RBC is projecting revenue of $1.05bn and EPS of $0.24, both in line with consensus estimates.

William Kirk commented, "While we still expect Sprouts to show strong market share gains (transaction count and basket volume growth), we have seen no evidence of an improving inflation environment. We are lowering our comparable store sales estimate to +4.2% (from 5.2%), compared to consensus of +4.5%. We remain bullish on the controllable elements of Sprouts' growth profile and reiterate Outperform rating."

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Shares of Sprouts Farmers Market closed at $23.24 yesterday.