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 $26.96.
Parikh noted:
“We are updating our SFM model following earnings on 11/1 to reflect a few discrete items discussed on the company’s call. We have now built the following into our model: 1) An estimate related to the lease accounting adjustment for FY19 and beyond (increased rent expense offset by lower interest expense) and 2) Incremental EBITDA margin pressures in FY19 (wage and training costs). We are making no changes to our PT, but we expect Street forecasts to move lower in coming months. SFM remains a top pick for us. For our latest deep dive, see our note titled Reiterate as a Top Pick (9/21/18).”
According to TipRanks.com, Parikh is a 5-star analyst with an average return of 16.6% and a 65.1% success rate. Parikh covers the Services sector, focusing on stocks such as United Natural Foods, Wal-Mart Stores Inc, and Ulta Beauty Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Sprouts Farmers with a $28.86 average price target, representing a 7.0% upside. In a report issued on November 5, Citigroup also maintained a Buy rating on the stock with a $31 price target.
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The company has a one-year high of $29.67 and a one-year low of $19.80. Currently, Sprouts Farmers has an average volume of 1.86M.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock.
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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.
