Oppenheimer analyst Rupesh Parikh maintained a Buy rating on Sprouts Farmers (SFM) today and set a price target of $31. The company’s shares opened today at $23.46.
Parikh said:
“We overall view the Q4 results and below-consensus FY19 guide as consistent with our thinking ahead of the print. Management introduced FY19 EPS guidance of $1.16-1.24 below a Street figure of $1.32, but in line with our expectation of $1.22. With the reset out of the way, we remain optimistic shares can outperform from here. We would put new money to work at these levels. The CEO overhang remains, but we expect this to be resolved soon. SFM remains a top, albeit anti-consensus pick in our grocery coverage. We currently rank SFM third after DG and COST.”
According to TipRanks.com, Parikh is a 5-star analyst with an average return of 15.9% and a 65.3% success rate. Parikh covers the Services sector, focusing on stocks such as Blue Apron Holdings Inc, United Natural Foods, and Wal-Mart Stores Inc.
Currently, the analyst consensus on Sprouts Farmers is a Hold with an average price target of $26.14.
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Based on Sprouts Farmers’ latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $37.5 million. In comparison, last year the company had a net profit of $39.7 million.
Based on the recent corporate insider activity of 54 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.
