Roth MKM analyst Bill Kirk raised the firm’s price target on Sprouts Farmers Market to $39 from $38 but keeps a Neutral rating on the shares. The company’s comp store sales and earnings beat, though its gross margin contracted slightly and new store openings are leading to some SG&A deleverage, the analyst tells investors in a research note. The firm adds that it continues to worry that margin pressure for Sprouts Farmers Market may persist, with valuation on the stock at 11-times enterprise value to expected EBITDA seen as “too rich”.
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Read More on SFM:
- Sprouts Farmers Market appoints Curtis Valentine as chief financial officer
- Sprouts Farmers Market raises FY23 EPS view to $2.77-$2.81 from $2.68-$2.76
- Sprouts Farmers Market sees Q4 adjusted EPS 42c-46c, consensus 43c
- Sprouts Farmers Market reports Q3 adjusted EPS 65c, consensus 62c
- Sprouts Farmers Market price target raised to $36 from $35 at Evercore ISI