Oppenheimer Reiterates Their Buy Rating on Whole Foods

By Ryan Adsit

In a report released today, Rupesh Parikh from Oppenheimer reiterated a Buy rating on Whole Foods (NASDAQ: WFM), with a price target of $40. The company’s shares closed last Friday at $35.99.

Parikh said:

“Last week, we spent time touring the latest version of the 365 concept in Cedar Park, TX with Rachael Funk, Investor Relations Associate. This follows our multiple prior visits to all three locations on the West Coast. We overall walked away more positive on the 365 concept. We still believe the concept has the potential to broaden WFM’s market share opportunity and has attributes to be “Internet proof” given attractive pricing, restaurant-like concepts, and a high skew toward perishable products. Sentiment remains quite downbeat toward WFM’s prospects, and we believe the national affinity launch, traction with initiatives, and further 365 openings could drive shares higher as the year progresses.”

According to TipRanks.com, Parikh is a 5-star analyst with an average return of 16.5% and a 64.1% success rate. Parikh covers the Services sector, focusing on stocks such as United Natural Foods, Life Time Fitness, and Natural Grocers.

Currently, the analyst consensus on Whole Foods is Hold and the average price target is $35.58, representing a -1.1% downside.

In a report issued on May 11, Wells Fargo also upgraded the stock to Buy with a $42 price target.

Whole Foods’ market cap is currently $11.47B and has a P/E ratio of 28.56. The company has a book value ratio of 3.4158.

Based on the recent corporate insider activity of 68 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Laura Derba, the Reg. President of WFM sold 2,200 shares for a total of $80,256.

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Whole Foods Market, Inc. engages in the retailing business of natural and organic foods. It operates a chain of natural and organic foods supermarkets in the United States, Canada, and the United Kingdom. The company’s products include beverages, body care, snacks, frozen, pantry staples, supplements and gift baskets and also eco-scaling cleaning products. Whole Foods Market was founded by John Mackey, Renee Lawson Hardy, Craig Weller and Mark Skiles in 1978 and is headquartered in Austin, TX.