Goldman Sachs has upgraded supermarket chain, Whole Foods
Market, Inc.( WFM )to a "Buy" on Tuesday.
The firm reported that they have upgraded WFM from "Neutral" to
a "Buy," and has raised its price target slightly from $105 to
$106. This price target suggests a 12% increase over the stock's
current price of $91.39.
An analyst from the firm commented, "as noted in our piece
"Mapping out the winning ways of wellness" published concurrently
with this upgrade, we believe that WFM is ideally positioned to
benefit from the secular trends in healthy eating. Our upgrade is
based on: (1) greater confidence in sustained +HSD comp growth and
square footage growth within the rapidly growing natural and
organic industry, (2) opportunity for EBIT margin expansion from
improved sales productivity and fixed cost leverage, and (3) an
attractive entry point at 30X NTM EPS, which has been a valuation
Whole Foods Market shares were mostly flat during premarket
trading Tuesday. The stock is up 31.37% YTD.
The Bottom Line
Shares of Whole Foods ( WFM ) have a .88%
dividend yield, based on last night's closing stock price of
$91.41. The stock has technical support in the $85 price area. If
the shares can firm up, we see overhead resistance around the
$95-$96 price levels.
Whole Foods Market, Inc.( WFM ) is not
recommended at this time, holding a Dividend.com DARS™ Rating of
3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well
as a detailed explanation of our ratings system here .