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Sprouts Farmers Market upgraded to soft 'buy' after 53% share drop, with strong 2026 profit outlook

Analyst Insights
22 Apr 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Sprouts Farmers Market (SFM) has been upgraded to a soft 'buy' following a 53% decline in its share price, making its valuation attractive. The company projects 2026 revenue growth of 4.5%–6.5%, driven mainly by 40 new store openings, despite flat to slightly negative comparable sales. SFM expects robust profitability with 2026 EPS guidance between $5.28 and $5.44 and EBITDA around $842 million, supported by its own-brand products and innovation that enhance margins and operational control. This upgrade reflects confidence in SFM's ability to maintain strong earnings despite sales challenges.

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