BMO Capital Maintains a Hold on Sprouts Farmers Market (SFM)

Sprouts Farmers Market, Inc. (NASDAQ:SFM) is one of the best consumer defensive stocks with more than 50% upside. Sprouts Farmers Market, Inc. (NASDAQ:SFM) reported its fiscal Q3 earnings highlights on October 29, with net sales for the quarter totaling $2.2 billion and reflecting a 13% growth from the prior year period. Comparable store sales experienced a 5.9% growth, while diluted earnings per share reached $1.22, compared to $0.91 in the same period last year.

Sprouts Farmers Market, Inc. (NASDAQ:SFM) opened 9 new stores in the quarter, resulting in 464 stores in 24 US states as of September 28.

BMO Capital analyst Kelly Bania maintained a Hold rating on Sprouts Farmers Market, Inc. (NASDAQ:SFM) following the earnings release, reducing the price target on the stock to $90 from $120 on October 30.

The analyst reasoned that the company reported comparable sales growth below expectations, with the Q4 guidance hinting at a further slowdown. Bania added that Sprouts Farmers Market, Inc.’s (NASDAQ:SFM) future comparable sales and margin outlook is steeped in uncertainty, which is supporting the cautious stance along with questions related to the pace of store growth and the necessity of price investments.

Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a specialty natural and organic food retailer that offers a specialty grocery experience. Its products are made of organic, plant-based, gluten-free, and similar lifestyle-friendly ingredients.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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