Whole Foods Market (WFM) PT Cut to $29 at Jefferies
Jefferies analyst Mark Wiltamuth reiterated a Hold rating and cut its price target on Whole Foods Market (NASDAQ: WFM) to $29.00 (from $33.00) following weak Q4 results as competition intensifies.
Wiltamuth commented, "WFM reported a 4Q shortfall on -0.2% comps and a sharp decline in margins. Comps have fallen to -2.1% QTD reflecting heightened competition in natural/organics. Mgmt. plans to sacrifice price/margin, cut $300M in costs, emphasize differentiation, invest in digital and will execute a new $1B leveraged share buyback in 1H16. F16 looks to be a year of pain with initial guidance of "at least $1.50" falling far short of cons. of $1.76."
The firm cut FY 2016 EPS from $1.74 to $1.57.
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Shares of Whole Foods Market closed at $30.76 yesterday.