UPDATE: UBS Securities Upgrades Sprouts Farmers Market as Brand Equity is at Inflection Point

In a report published Tuesday, UBS Securities analyst Jason DeRise upgraded the rating on Sprouts Farmers Market (NASDAQ: SFM) from Neutral to Buy, and raised the price target from $41.00 to $43.00.

In the report, UBS Securities noted, “Sprouts has taken a conservative approach to its guidance, by assuming just 7-8% in 2014 comparable store sales growth after 10% growth in 2013. It also assumes ~75% new store productivity after generating ~90% productivity in 2013. On Mar-25 SFM disclosed Q1 comparable store sales growth of 12.5% and implied ~90% new store productivity, suggests the momentum can continue and guidance is too conservative.”

Sprouts Farmers Market closed on Monday at $35.42.