Market Overview

Imperial Capital Initiates Coverage On Sprouts Farmers Markets

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In a research note released Friday, Imperial Capital analyst Mitchell P. Pinheiro initiated coverage on Sprouts Farmers Markets (NASDAQ: SFM) with an In-line rating and a price target of $36.00 per share.

The company has had a decline of 35 percent from its post-IPO highs that it had reached in October 2013. The analyst said, “We believe the stock remains richly priced, particularly relative to its peers, which have equally compelling growth stories.”

In addition, the analyst believes that the company can increase revenue and earnings per share at a three-year CAGR of 15 percent and 28 percent, respectively.

Furthermore, the analyst used the following reasons as rationale for the price target.
• Large and growing market
• EBITDA valuation premium of 121 percent to its peers keeps us on the sidelines. A long runway of unit growth.
• Natural and organic segment competitive environment

Latest Ratings for SFM

DateFirmActionFromTo
Dec 2014Longbow ResearchInitiates Coverage onUnderperform
Sep 2014BarclaysInitiates Coverage onOverweight
Sep 2014Piper JaffrayInitiates Coverage onNeutral

View More Analyst Ratings for SFM
View the Latest Analyst Ratings

Posted-In: imperial capital Mitchell P. PinheiroAnalyst Color Initiation Analyst Ratings

 

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