- Sprouts Farmers Market (SFM) is under pressure, falling 2.6% in premarket trading after Goldman initiates the shares at Neutral with a price target ($33) that's ~15% below Monday's close.
- "While we are attracted to SFM's long-term growth potential and competitive position, the market has quickly appreciated this growth," analyst Stephen Grambling says.
- The shares trade at nearly 80x forward earnings (Goldman's estimates), which Grambling notes is a "meaningful premium to the specialty peer group average of 42x."
Goldman starts Sprouts at Neutral, says forward multiple is high
Sep 10 2013, 09:29 ET