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Research Alert: CFRA Lifts Opinion On Shares Of Sprouts Farmers Market, Inc. To Buy From Hold
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Research Alert: CFRA Lifts Opinion On Shares Of Sprouts Farmers Market, Inc. To Buy From Hold
May 25, 2025 11:29 PM

10:55 AM EDT, 05/01/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target to $205 from $149, or 35x our 2026 EPS estimate of $5.85 (up from $5.51; 2025 EPS raised to $5.16 from $4.82) vs. the 20x three-year average. We believe this premium is justified by SFM's industry-leading comparable sales growth, strong margin expansion, and significant new store runway. We also expect the company to continue benefiting from the ongoing health and wellness trend, supported by its differentiated assortment of specialty and attribute-based products. The upcoming launch of SFM's new loyalty program (expected in Q3) should further support comparable sales in the back half of 2025 and into 2026, while the transition to self-distribution for meat and seafood should enhance margins in 2026. Given the company's relatively early stage compared to grocery peers, we also see additional opportunities for structural margin expansion. Our upgrade to Buy reflects above-consensus forecasts for both revenue and EPS in 2025 and 2026.

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