Sprouts Farmers Market (SFM) Gets a Boost from RBC Capital

Sprouts Farmers Market, Inc. (NASDAQ:SFM) is one of the best stocks to buy according to Jim Simons’ Renaissance Technologies. On October 13, RBC Capital upgraded Sprouts Farmers Market (NASDAQ:SFM) to Outperform from Sector Perform, lowering its price target to $148 from $176.

Sprouts Farmers Market (SFM) Gets a Boost from RBC Capital

The move follows a 42% drop in SFM shares since June, significantly underperforming both grocery peers and the broader market. RBC believes the current valuation already reflects expected sales slowdowns and considers concerns over recent promotions to be overstated.

Looking ahead, RBC projects strong medium-term growth for Sprouts, including low double-digit revenue increases, 4–5% comparable store sales growth, and 8–10% unit expansion. With anticipated EPS growth in the low to mid-teens, the revised $148 target suggests a 43% upside from current levels.

Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a specialty grocery retailer. It operates more than 430 stores across 24 US states. The retailer offers fresh produce, natural and organic foods, vitamins, bulk items, and lifestyle-friendly products such as plant-based, gluten-free, and keto-friendly options.

While we acknowledge the potential of Sprouts Farmers Market, Inc. (NASDAQ:SFM) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SFM and that has 100x upside potential, check out our report about the cheapest AI stock.

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