BMO Capital Reduces PT on Sprouts Farmers Market (SFM) Stock

Sprouts Farmers Market, Inc. (NASDAQ:SFM) is one of the Stocks to Buy with Exponential Growth Heading into 2026. On October 22, BMO Capital analyst Kelly Bania reduced the price target on the company’s stock to $120 from $170 while keeping a “Market Perform” rating, as reported by The Fly.

As per the firm, the downside valuation thesis continues to play out. This is being driven by data points demonstrating a weakening of same-store sales, added the analyst. That being said, the firm believes that the current valuation is attractive for the high-growth retailer possessing white space potential focused towards Natural & Organics markets.

In a separate release, on October 22, Goldman Sachs reduced the price objective on Sprouts Farmers Market, Inc. (NASDAQ:SFM)’s stock to $178 from $209, while keeping a “Buy” rating, as reported by The Fly.

This reduction exhibits the recent deceleration in trends. However, the analyst believes that the recent pullback in Sprouts Farmers Market, Inc. (NASDAQ:SFM)’s stock created an attractive entry point as valuations are now tracking below the historical averages and key peers. Over the past 6 months, the company’s stock has declined by ~38%.

Investment management company First Pacific Advisors recently released its Q2 2025 investor letter. Here is what the fund said:

“Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a supermarket chain focusing on fresh, natural and organic products. The company has strong operating margins,13 attractive returns on capital and great new store economics. Sprouts accelerated its unit growth from 12 stores a year to 33 stores in 2024 on a base of roughly 400 stores. Over the past year, SFM’s stock has performed extremely well after reporting consistently strong operating results. We have been trimming our position since the third quarter of 2024 and Sprouts now sits outside of our top 10 by weight. Although SFM’s share price has increased faster than bottom line results, we believe SFM still trades in the “range of reasonableness” for a high-quality, non-cyclical franchise that can reinvest capital at attractive rates of return.”

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