RBC Capital Upgrades Whole Foods Market (WFM) to Outperform
RBC Capital upgraded Whole Foods Market (NASDAQ: WFM) from Sector Perform to Outperform with a price target of $51.00 (from $54.00), with shares down 11.9% following results after the close. The firm believes comps can now accelerate.
Analyst William Kirk commented, "While comparable store sales were disappointing for 2Q and through May 3rd, we believe comps can now accelerate. Easing intra-quarter/back-half, prior-year comparables and the cumulative effects of store refreshes should lead to sequential improvements. We also believe Whole Foods is addressing our unit expansion concerns by announcing a likely cheaper/smaller new format. At post-recession valuation lows, we consider risk-reward favorable."
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Shares of Whole Foods Market closed at $47.72 yesterday.