Market Overview

UPDATE: Morgan Stanley Initiates Coverage On Sprouts Farmers Market

Share:
Related SFM
Winners And Losers As Amazon Moves Into The Grocery Space
Grocers Continue To Struggle As Kroger Delivers Gloomy Outlook
Amazon Fresh seen as a threat to Sprouts Farmers Market (Seeking Alpha)

In a report released Tuesday, Morgan Stanley analyst Vincent Sinisi initiated coverage on Sprouts Farmers Market (NASDAQ: SFM) with an Overweight rating and a $38 price target.

Sinisi appears bullish on his 2013 to 2016 EPS CAGR estimate of 35 percent for the company. He adds that Sprouts Farmers Market is a direct play on the natural/organic secular growth and the company holds a competitive advantage by offering its products for cheaper than its competitors.

Morgan Stanley projects between 13 to 14 percent store growth with a 95 percent productivity level. Sprouts Farmers Market is positively skewed on Morgan Stanley's risk/reward guidance given by the company's new store productivity growth over 100 percent for the last two quarters.

Morgan Stanley's price target is given by the firm's 2015 EPS estimate of $0.92 ($0.07 above consensus) giving a P/E multiple of 41x.

Shares of Sprouts Farmers Market are up over 3.5 percent.

Latest Ratings for SFM

DateFirmActionFromTo
Jan 2017Goldman SachsDowngradesBuyNeutral
Sep 2016JefferiesUpgradesHoldBuy
Sep 2016BarclaysInitiates Coverage onOverweight

View More Analyst Ratings for SFM
View the Latest Analyst Ratings

Posted-In: Morgan Stanley Vincent SinisiAnalyst Color Price Target Initiation Analyst Ratings

 

Related Articles (SFM)

View Comments and Join the Discussion!