In a report released today, Rupesh Parikh from Oppenheimer upgraded Sprouts Farmers (SFM) to Buy, with a price target of $31. The company’s shares closed yesterday at $23.92.
Parikh observed:
“SFM will report Q4 results on 2/21. Ahead of the print, we spent time updating our views. We continue to look favorably upon the company’s prospects, but expect a volatile trade with the guidance. Management has telegraphed headwinds to a lease accounting headwind, payroll investments until lapped, training costs associated with fresh-item management, and lapping of a lower tax rate. As a result, we believe management could guide bracketing our $1.22 forecast, below a Street figure of $1.32. We remain optimistic that an earnings reset post the report and eventually clarity over a new CEO can lift the cloud hovering over shares. SFM remains a top albeit anti-consensus pick for 2019, and we would take advantage of any volatility on the print.”
According to TipRanks.com, Parikh is a 5-star analyst with an average return of 15.5% and a 62.9% success rate. Parikh covers the Services sector, focusing on stocks such as Blue Apron Holdings Inc, United Natural Foods, and Wal-Mart Stores Inc.
The word on The Street in general, suggests a Hold analyst consensus rating for Sprouts Farmers with a $26.33 average price target.
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The company has a one-year high of $29.67 and a one-year low of $20.63. Currently, Sprouts Farmers has an average volume of 1.94M.
Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SFM in relation to earlier this year.
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Sprouts Farmers Markets, Inc. engages in the provision of healthy grocery stores. It specializes in fresh, natural, and organic products. Its products include fresh produce, bulk foods, vitamins and supplements, grocery, meat and seafood, deli, bakery, dairy, frozen foods, body care, and natural household items.
