UBS Affirms ‘Neutral’ Rating on Sprouts Farmers (SFM) on Retail Sector Opportunity

Sprouts Farmers Market, Inc. (NASDAQ:SFM) is one of the 10 best organic food and farming stocks to buy now. On June 9, UBS reiterated a ‘Neutral’ rating on the stock and a $196 price target. The research firm remains optimistic about the company’s prospects in the niche US food retail sector valued at $290 billion.

UBS Affirms ‘Neutral’ Rating on Sprouts Farmers (SFM) on Retail Sector Opportunity

Since 2020, Sprouts Farmers has switched its focus from price-sensitive customers. According to UBS, realignment towards a customer base focused on health and dietary attributes is already paying dividends. Consequently, the research firm’s ‘Neutral’ rating underscores the recognition of Sprouts Farmer’s solid position in a specialized market segment.

The pivot has already resulted in revenue growing by 15.5% over the last 12 months. In return, the company is experiencing benefits from its comp waterfall strategy, which is fueling same-store sales growth.

Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a grocery chain that specializes in fresh, natural, and organic foods. It provides a wide variety of healthy and affordable products, including produce, bulk foods, vitamins and supplements, and natural household items.

While we acknowledge the potential of SFM to grow, 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 this cheapest AI stock.

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