RBC Capital Cuts Price Target on Sprouts Farmers Market (SFM) Following 2Q Results

RBC Capital maintained an Outperform rating on Sprouts Farmers Market (NASDAQ: SFM), and cut the price target to $35.00 (from $38.00), following 2Q15 results. SFM reported an adjusted EPS of $0.22 was in-line with the consensus estimate. Revenue was also in-line with consensus at $902m.

Analyst William Kirk commented, "As expected, unrelenting deflationary pressures led to a comparable store sales miss. Sprouts lowered forward guidance assuming: continued price investment, flat inflation, and higher cannibalization. That said, a sequential improvement in traffic and the strongest basket growth (ex. inflation) since 1Q14, give us confidence Sprouts is still operating at peak levels. We reiterate our Outperform, but lower our price target to $35 (from $38)."

For an analyst ratings summary and ratings history on Sprouts Farmers Market click here. For more ratings news on Sprouts Farmers Market click here.

Shares of Sprouts Farmers Market closed at $23.50 yesterday.

You May Also Be Interested In

• TD Cowen Downgrades Flowserve Corp. (FLS) to Hold
• JPMorgan Downgrades Wipro Ltd. (WPRO:IN) (WIT) to Underweight
• JPMorgan Downgrades Tata Technologies (TATATECH:IN) to Underweight