Sprouts Farmers Market price target raised to $40 from $31 at BMO Capital

BMO Capital raised the firm’s price target on Sprouts Farmers Market to $40 from $31 but keeps an Underperform rating on the shares. The company posted solid quarter on strong comps, supported by 25% ecommerce growth, and continued gross margin expansion, though its shift to less price-sensitive customers may prove to be more challenging and the management’s minor changes to marketing may not be enough, potentially leading to Sprouts becoming more promotional and risking its margins, the analyst tells investors in a research note.