In a report released today, Rupesh Parikh from Oppenheimer maintained a Buy rating on Sprouts Farmers (SFM), with a price target of $31. The company’s shares closed on Friday at $23.02.
Parikh noted:
“On 11/30, multiple SFM insiders including Interim co-CEO and CFO and CMO David McGlinchey purchased shares. We have seen other opportunistic buying in recent years such as CFO Brad Lukow purchasing 7,000 shares at $19.80 on 8/29/17. Following the unexpected CEO departure announcement, SFM shares fell nearly 15% on Friday, much deeper than we would have envisioned knocking ~$500M off the market cap of SFM. We are surprised by the magnitude of the decline, and see an attractive outlook for the shares through 2019. In our view, Street estimates need to be reset primarily due to an accounting adjustment as we discussed in our prior research. At these levels, we think this is more than priced in. SFM remains a top pick for us.”
According to TipRanks.com, Parikh is a 5-star analyst with an average return of 15.8% and a 63.1% success rate. Parikh covers the Services sector, focusing on stocks such as Blue Apron Holdings Inc, United Natural Foods, and Wal-Mart Stores Inc.
Sprouts Farmers has an analyst consensus of Hold, with a price target consensus of $27.44.
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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 $31.49 million.
Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is neutral 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.
