Oppenheimer analyst Rupesh Parikh sees additional upside for
Whole Foods Market, Inc. (NASDAQ: WFM) after
news broke Friday morning of its acquisition by Amazon.com,
Inc. (NASDAQ: AMZN). Parikh maintains his
Outperform rating and lifted his price target to $45.
“Last month, we highlighted a 50 percent probability for a takeout, and this is one of the outcomes that has materialized,”
Parikh said. “We overall view a takeout value of $42 as undervaluing the company’s prospects and the powerful brand. In a takeout
scenario, we estimated a value in the mid-$40’s range, so it appears there is some money being left on the table.”
Another Bid For Whole Foods?
Parikh would not rule this possibility out given Whole Food’s strong management team and brand. He sees a potential bid
resulting from a defensive measure to keep Jeff Bezos out of the grocery industry.
At time of publication, Whole Foods was up 29.84 percent at $42.92.
Related Links:
Amazon's
Acquisition Of Whole Foods Should Create Lower Prices, Offer Better Consumer Experience
Sprouts
Farmers: Buy The Dip, This Could Be The Next Takeout Target
Latest Ratings for WFM
| Date |
Firm |
Action |
From |
To |
| Jun 2017 |
Barclays |
Upgrades |
Equal-Weight |
Overweight |
| May 2017 |
Loop Capital |
Initiates Coverage On |
|
Hold |
| May 2017 |
Wells Fargo |
Upgrades |
Market Perform |
Outperform |
View More Analyst Ratings for
WFM
View the Latest Analyst Ratings
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