An upgrade for Sprouts Farmers Market Inc from Underperform to Buy has investors chirping with delight after BofA Securities analyst Robert Ohmes gave the grocer a solid pat on the back.
Ohmes not only bumped up the rating but also raised the price target from $30 to $70, sending a gust of confidence throughout the investor landscape.
This boost in sentiment comes on the heels of Sprouts Farmers Market sealing a deal to offer its extensive range of over 15,000 products on Uber Eats, the culinary arm of Uber Technologies Inc.
With the company shifting gears towards a higher store growth rate of approximately 9%, spirits are high among those tracking Sprouts’ trajectory, with expectations of surpassing the 10% threshold by 2025.
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Ohmes waxed lyrical about Sprouts Farmers Market in his upgrade note, praising the company’s stronghold in Food Retail and applauding its ability to navigate past traffic hurdles that surfaced post promotional strategy tweaks.
The analyst voiced optimism noting the emergence of enhanced margins and a rejuvenated customer base propelling Sprouts forward.
With a footprint extending over 400 stores, Sprouts Farmers Market is in a sweet spot as competition eases, boasting an inventory brimming with attribute-based products like organic, grass-fed, vegan, and keto varieties.
Thanks to a robust performance in the fourth quarter, earnings projections for 2024 have been upped by 15 cents to $2.90 per share, adding a layer of confidence in the stock’s allure.
How has Sprouts Farmers Market fared in terms of stock price? Shares in the grocery giant sprouted a 1.73% gain, blooming to $61.38 at the time of publication on a bustling Tuesday.
Image: Courtesy of Sprouts Farmers Market
