Sprouts Farmers Market (SFM) could see a "modest" reset to "aggressive" Street estimates, Oppenheimer said in a note Monday after a recent virtual meeting with the company.

Oppenheimer analysts said the shares remain on their radar with a discounted valuation and attractive longer-term unit growth prospects representing key positives.

The report pointed to Sprouts shares trading at about 11 times next-12-month consensus earnings, below historical averages and near prior trough levels.

"However, we continue to view Street estimates for FY26 and FY27 as aggressive, and expect a modest reset down the road," the note said. Oppenheimer has a perform rating on the stock.

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