Goldman Sachs Cuts Sprouts Farmers Market Price Target to $111 on Early-Year Comp Slowdown
Goldman Sachs reduced Sprouts Farmers Market’s price target to $111 from $130, retaining a Buy rating after observing subpar comparable-store sales in early 2026 that lowered the full-year EPS projection to $5.28–$5.44. It comes after Q4 net sales of $2.1 billion and 14% full-year revenue growth in 2025.
1. Goldman Sachs Lowers Price Target
Goldman Sachs trimmed its one-year price target on Sprouts Farmers Market from $130 to $111 while maintaining a Buy rating, reflecting a more cautious view of near-term performance. This adjustment represents a roughly 15% cut in the bank’s valuation of the stock.
2. Early-Year Comparable Store Sales Slowdown
Analysts flagged slower-than-expected comparable-store sales in the opening weeks of 2026, prompting the outlook revision. These weaker comps are anticipated to weigh on growth and have been incorporated into the updated forecasts.
3. Robust Fiscal 2025 Performance
Sprouts reported Q4 net sales of $2.1 billion and delivered 14% full-year revenue growth, boosting diluted EPS to $5.31. The company also opened 477 new stores across 24 states, underscoring its expansion momentum.
4. 2026 EPS Guidance
Management projects diluted EPS between $5.28 and $5.44 for fiscal 2026, with comparable-store sales expected to be flat to modestly positive. The guidance highlights headwinds from tougher prior-year comparisons and macroeconomic volatility.