JPMorgan Reiterates Neutral Rating on Sprouts Farmers Market, Keeps PT at $159

Sprouts Farmers Market, Inc. (NASDAQ:SFM) is one of the 10 Best Grocery Stocks to Buy According to Hedge Funds. On August 20, J. P. Morgan reiterated a Neutral rating on Sprouts Farmers Market, Inc. (NASDAQ:SFM), with the price target at $159.

Thomas Palmer from J. P. Morgan retains the rating on SFM as the analyst sees Sprouts as “uniquely well-positioned in the current health-conscious, additive-adverse consumer environment.” Palmer expects Sprouts Farmers Market to maintain comparable sales and earnings growth above the broader retail industry.

Sprouts mainly focuses on selling fresh, better-for-you, and clean-label products. Palmer pointed out that this is an area where consumer preferences appear to be shifting at an accelerated rate compared to the past. The analyst sees a long runway for the company to grow its store base, indicating potential for physical expansion in the future.

As of August 27, Sprouts Farmers Market, Inc.’s (NASDAQ:SFM) average price target of $182.50, based on analysts’ estimates, implies an upside of almost 26.22% from current levels.

Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a specialty natural and organic food retailer. The company sells products made with lifestyle-friendly ingredients such as organic, plant-based, and gluten-free.

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Disclosure: None. This article is originally published at Insider Monkey.