RBC Capital upgraded Sprouts Farmers Market (SFM) to Outperform from Sector Perform with a price target of $148, down from $176. The shares, after dropping 42% from the June peak, reflect a comp deceleration on tough compares and concerns over recent promotional activity, the analyst tells investors in a research note. RBC views the concerns as overblown and sees a positive risk/reward at current share levels. Looking beyond the next few quarters, Sprouts can post low-double-digit revenue growth, contends RBC.
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