On July 30, Sprouts Farmers rose 8.96% in regular trading, reaching $89.50/share with turnover of $21.09 million. The rally was driven by better-than-expected Q2 earnings released the prior evening and a notable analyst upgrade from JPMorgan.

Sprouts Farmers reported Q2 adjusted EPS of $1.37, beating the FactSet consensus estimate of $1.34 by 2.24%, while revenue of $2.326 billion also edged past the $2.320 billion estimate. On the earnings call, management noted the Cyclospora outbreak is expected to have only a mild impact, mostly materializing in Q3, effectively alleviating concerns previously raised by Oppenheimer regarding weak grocery demand and produce-related headwinds.

Following the results, JPMorgan upgraded the stock to Overweight from Neutral and raised its price target to $103 from $80. Deutsche Bank also lifted its target to $84 from $81 while maintaining a Hold rating. The average analyst price target now stands at $96.73 with an overweight consensus rating.

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