Sprouts Farmers Market's (SFM) recent share pullback is warranted amid broader challenges impacting consumer health, UBS Securities said in a Wednesday note.

"We think Sprouts' recent re-rating is appropriate when considering headwinds," the report said.

Looking ahead to its Q4 results due Feb. 19, the report said tough compares, cost of living pressures, and a less favorable population growth set up likely to weigh on its performance.

According to the report, UBS sees 1.0% same-store sales growth in Q4, below market consensus, while its EPS estimate of $0.90 is slightly above the consensus of $0.89.

UBS cut its price target to $75 from $108 while keeping its neutral rating on lower valuation multiple.

Price: 67.16, Change: -0.40, Percent Change: -0.59