Jefferies analyst Christopher Mandeville lowered estimates and his price target on Sprouts Farmers Market (NASDAQ: SFM) to $23.00 (from $24.00) but maintained a Buy rating. The analyst said the long-term story remains.

Mandeville commented, "The 3Q print was a mixed bag with solid comps but weak margins/earnings. Additionally, while the low-end of comp guidance was raised, this still implies worsening 4Q trends. With any high multiple name, an earnings miss is expected to be met with disapproval; however, we view the reaction as overdone and given our belief in SFM's solid 10-12% L-T EBITDA growth, we believe shares can rerate higher once elevated cannibalization/deflation/elevated promos abate."

The firm trimmed Q4 EPS from $0.14 to $0.13, FY16 from $0.86 to $0.85 and FY17 from $0.97 to $0.92.

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Shares of Sprouts Farmers Market closed at $20.03 yesterday.