CFRA raises Sprouts Farmers Market target to $177, holds rating

Published 31/01/2025, 20:24
CFRA raises Sprouts Farmers Market target to $177, holds rating

Furthermore, Sprouts Farmers (NASDAQ:SFM) Market is on track to expand its store count aggressively, targeting a 10% annual growth in units. This strategy translates to approximately 45-50 new stores each year, with the current number of stores being fewer than 450. The company’s long-term goal is to surpass 1,000 stores. The market appears to support this expansion strategy, with analyst targets ranging from $105 to $165, though current trading levels suggest the stock may be approaching full valuation according to InvestingPro’s Fair Value analysis. The market appears to support this expansion strategy, with analyst targets ranging from $105 to $165, though current trading levels suggest the stock may be approaching full valuation according to InvestingPro’s Fair Value analysis.

Furthermore, Sprouts Farmers Market is on track to expand its store count aggressively, targeting a 10% annual growth in units. This strategy translates to approximately 45-50 new stores each year, with the current number of stores being fewer than 450. The company’s long-term goal is to surpass 1,000 stores. The market appears to support this expansion strategy, with analyst targets ranging from $105 to $165, though current trading levels suggest the stock may be approaching full valuation according to InvestingPro’s Fair Value analysis.

Furthermore, Sprouts Farmers Market is on track to expand its store count aggressively, targeting a 10% annual growth in units. This strategy translates to approximately 45-50 new stores each year, with the current number of stores being fewer than 450. The company’s long-term goal is to surpass 1,000 stores. The market appears to support this expansion strategy, with analyst targets ranging from $105 to $165, though current trading levels suggest the stock may be approaching full valuation according to InvestingPro’s Fair Value analysis.

Furthermore, Sprouts Farmers Market is on track to expand its store count aggressively, targeting a 10% annual growth in units. This strategy translates to approximately 45-50 new stores each year, with the current number of stores being fewer than 450. The company’s long-term goal is to surpass 1,000 stores.

The revised 12-month price target of $177 is based on 35 times CFRA’s newly initiated 2026 earnings per share (EPS) estimate of $5.07. The firm’s EPS projections for 2025 have been adjusted to $4.35 from $4.52, while the 2024 estimate remains unchanged at $3.69. The analyst anticipates that Sprouts Farmers Market’s EPS will grow by approximately 15%-20% annually over the next two years, outpacing the consensus estimates of 10%-15%.

In other recent news, Sprouts Farmers Market has reported a robust growth in its Q3 financial results for 2024. The company saw a 14% increase in total sales, reaching $1.9 billion, and an 8.4% rise in comparable store sales. E-commerce sales surged by 36%, contributing significantly to the overall sales growth. In addition, diluted earnings per share experienced a 40% increase, reaching $0.91.

Sprouts Farmers Market also highlighted plans for future expansion, with nine new stores opened and 33 more planned for 2025. This is slightly reduced from the original plan of 35 due to the impact of Hurricane Milton. The company’s outlook includes maintaining a growth rate of 2% to 4% in the upcoming year and continuing investments in infrastructure and product assortment.

Recent developments at Sprouts Farmers Market also include the launch of a new loyalty program set to expand to additional markets in early 2025. This is part of the company’s strategy to enhance customer engagement and loyalty. Despite concerns about potential sales slowdown and volatility in fresh produce prices, the company remains optimistic about achieving 8% to 10% comparable store sales growth in Q4.

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