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Barclays upgrades Sprouts to Overweight on sales upside

Barclays analyst Seth Sigman upgraded Sprouts Farmers Market (SFM) to Overweight from Equal Weight with a price target of $185, up from $173. The company reported up to Q2 estimates, raised its fiscal year guidance again, and pointed to potential upside to its long-term growth targets, the analyst tells investors in a research note. The firm believes Sprouts’ sales drivers like loyalty, e-commerce and strong new store performance, support upside to sales. Barclays is now confident in the company’s earnings growth story and believes the shares warrant a premium valuation.

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