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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