Sprouts Bounces 1.68% Despite 400th Volume Rank as Jefferies Hails Expansion Loyalty Gains

Sprouts Farmers Market (SFM) closed August 1, 2025, with a 1.68% gain, despite a 56.14% drop in trading volume to $310 million, ranking it 400th among active stocks. The move followed a Jefferies upgrade to "Buy," driven by double-digit same-store sales growth in Q2, accelerated store expansion, and a successful loyalty program rollout. Management raised full-year guidance, citing outperformance in new markets and strong new store performance. The firm highlighted 35 new store openings in 2025, a 30% increase in approved sites since year-end 2024, and early traction from the Sprouts Rewards program ahead of a year-end 2025 launch.

Analysts noted the grocer’s Innovation Center is enhancing differentiation through health-focused products, while consistent comp growth and scalable expansion support a more bullish outlook. Jefferies raised its 2025–2027 EBITDA estimates and set a $190 price target based on 20x forward EBITDA. The post-earnings pullback was positioned as a buying opportunity, with the firm emphasizing Sprouts’ alignment with consumer trends and loyal customer base. Store expansion and loyalty program progress remain key catalysts for near-term momentum.

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