Deutsche Bank Downgrades Whole Foods Market (WFM) to Hold

Deutsche Bank downgraded Whole Foods Market (NASDAQ: WFM) from Buy to Hold with a price target of $40.00 (from $60.00).

Analyst Karen Short said, "Natural retailers account for 4% of total supermarket units today - an indication that there is ample room for all of the natural players to take share from conventionals. For now, however, these formats are growing at ~15% – well above conversion rates at the consumer level. This disconnect is leading to excess capacity in the near term – or “temporary saturation”, and until this situation shakes out through consolidation, store closures and market exits, all participants in the space may feel some pain. As a result, despite the fact that we firmly believe WFM will ultimately reign, the stock could be range bound in the intermediate term, so we are downgrading to Hold with a $40 price target."

For an analyst ratings summary and ratings history on Whole Foods Market click here. For more ratings news on Whole Foods Market click here.

Shares of Whole Foods Market closed at $47.95 yesterday.

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