Bank of America Securities analyst Robert Ohmes reiterated a Buy rating on Sprouts Farmers (SFM – Research Report) today and set a price target of $185.00.
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Robert Ohmes has given his Buy rating due to a combination of factors, including Sprouts Farmers Market’s impressive sales and margin outlook. The company has demonstrated strong same-store sales and a sustained higher gross margin rate, which have prompted an upward revision of the price objective to $185. Ohmes sees potential for further estimate adjustments supported by strong comparable sales and traffic, as well as robust margin performance.
Additionally, Sprouts Farmers Market has shown promising signs of growth, with plans for geographic expansion and strategic initiatives like assortment enhancements and increased focus on private label and personalization. Despite concerns about traffic recovery and valuation at a 10-year high, Ohmes believes that Sprouts has successfully repositioned itself to attract a higher margin customer base. The company’s differentiated product assortment and increasing scale present it as a strong contender in the market, further justifying the Buy rating.
According to TipRanks, Ohmes is a 5-star analyst with an average return of 11.7% and a 62.50% success rate. Ohmes covers the Consumer Cyclical sector, focusing on stocks such as Costco, Lowe’s, and AutoZone.