Oppenheimer: Whole Foods Market’s Bottom Still In, But Timing Of Next Potential Move Higher Less Clear


In a research report issued today, Oppenheimer analyst Rupesh Parikh assigned an Outperform rating on Whole Foods Market (NASDAQ:WFM) with a $45 price target, which represents a potential upside of 14.5% from where the stock is currently trading.

Parikh wrote, “Since July, our view has been that shares have bottomed but were likely range-bound in the $35-$40 range. As we look toward the upcoming report, we believe management could introduce guidance below consensus forecasts. With still quite subdued sentiment, we believe the recent bottom in the $35-$36 range will continue to hold. For L-T investors, we expect a comp stabilization/reacceleration sometime later in FY15/early FY16 as management initiatives including the loyalty card program and store remodels take hold. However, with prospects for a comp reacceleration still a few quarters away, the timing of the next potential move higher in shares to a mid-$40s level is less clear, in our view.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Rupesh Parikh has a total average return of -10.4% and a 40.0% success rate. Parikh has a -21.1% average return when recommending WFM, and is ranked #2950 out of 3355 analysts.