Sprouts Farmers Market Gets Double Upgrade After Uber Eats Deal, Strong Q4 Results
Portfolio Pulse from Priya Nigam
BofA Securities analyst Robert Ohmes upgraded Sprouts Farmers Market Inc (NASDAQ:SFM) from Underperform to Buy and raised the price target from $30 to $70 following a deal with Uber Eats and strong Q4 results. Sprouts will make over 15,000 products available on Uber Eats, and aims for a store growth rate of around 9%, targeting more than 10% by 2025. The company's unique position in food retail and differentiated product assortment contribute to its competitive edge. Following strong Q4 results, the 2024 earnings estimate for SFM has been raised to $2.90 per share.
February 27, 2024 | 10:08 pm
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POSITIVE IMPACT
Sprouts Farmers Market Inc was upgraded by BofA Securities from Underperform to Buy with a price target increase from $30 to $70, following a partnership with Uber Eats and strong Q4 results.
The double upgrade and significant price target increase reflect a strong bullish sentiment from BofA Securities, likely due to the strategic partnership with Uber Eats and impressive Q4 performance. This could lead to increased investor confidence and potential stock price appreciation in the short term.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
POSITIVE IMPACT
Uber Technologies Inc's food delivery platform, Uber Eats, has partnered with Sprouts Farmers Market to deliver over 15,000 of its products.
The partnership with Sprouts Farmers Market to deliver its products via Uber Eats could enhance Uber's food delivery platform's market presence and appeal, potentially leading to increased usage and revenue. This strategic move is likely to be viewed positively by investors, contributing to a positive short-term impact on UBER's stock.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 75