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.

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.

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