Sprouts Farmers Market Stock Rises After Bullish Upgrade

Sprouts Farmers Market Stock Rises After Bullish Upgrade

Shares of Sprouts Farmers Market rose Monday as Wall Street's outlook for the grocer's stock turned a bit greener.

Sprouts' ( SFM ) stock was recently up more than 3% to above $140, putting the shares ahead some 11% this year but well off 2025 highs closer to $180. The latest catalyst: an upgrade from analysts at Deutsche Bank, who lifted their rating to "buy" from "hold" and set a $190 price target on the shares that is roughly 40% higher than Friday's close and 9% above Visible Alpha's $175 consensus.

"We had been fans of the story and the management team but were waiting for a better entry point," the analysts wrote. "We think we are now there."

Deutsche Bank based its case on optimism about same-store sales growth driven in part by an improving product assortment, trends pointing toward healthier eating, and an in-the-works loyalty program. The stock, the analysts wrote, "warrants a premium valuation" more akin to warehouse clubs like Costco ( COST ) than other grocers.

The company in February turned in 2024 results that included 13% sales growth and comparable-sales growth approaching 8%. It pointed investors toward full-year net and comparable-sales growth of 11.5% and 5.5%, respectively.

Visible Alpha tracks four analysts with "buy" ratings on Sprouts, and five with "holds."

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