What Analysts Think of Sprouts Farmers Market



Analysts’ recent actions on SFM

There were no recommendation changes from Wall Street analysts on Sprouts Farmers Market (SFM) after its 4Q17 results.

The company, which is covered by a total of 23 analysts, is rated a 2.1 on a scale of 1 (strong buy) to 5 (sell). It has a better rating than most food retailers such as Kroger (KR) at 2.4, Walmart (WMT) at 2.3, and SuperValu (SVU) at 2.8.

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Recommendation summary

A total of 61% of the analysts covering SFM have set “buy” recommendations on the stock. Gordon Haskett and Northcoast Research recently upgraded SFM’s rating to a “buy.”

A total of 35% of analysts, including Stephens and Jefferies, have suggested “holds” on the stock, while the remaining 4% of analysts have recommended “sells.”

The company has received the highest number of “buy” ratings among its grocery peers. In comparison, 40%, 18%, and 44% of analysts have recommended “buys” on Kroger, SuperValu, and Walmart, respectively.

Target price

According to the latest data compiled by Thomson Reuters, Wall Street has given SFM a price target of $29.40, reflecting a potential upside of 17%. The company has a better upside compared to Kroger and Walmart, whose stock prices are predicted to jump 6% and 13%, respectively.

SuperValu, however, leads the pack in terms of upside potential. Its stock price is forecast to rise a whopping 97% over the next year.

Those looking to invest in SFM through ETFs can choose to invest in the PowerShares Dynamic Food & Beverage ETF (PBJ). SFM has a weight of ~3.2% in PBJ.


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