Whole Foods Bulls Proven Right? Analyst Says A Competing Bid Against Amazon Is Possible

Jun 16, 2017 - 3:14 PM EDT

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 companys prospects and the powerful brand. In a takeout scenario, we estimated a value in the mid-$40s range, so it appears there is some money being left on the table.

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Another Bid For Whole Foods?

Parikh would not rule this possibility out given Whole Foods 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

DateFirmActionFromTo
Jun 2017BarclaysUpgradesEqual-WeightOverweight
May 2017Loop CapitalInitiates Coverage OnHold
May 2017Wells FargoUpgradesMarket PerformOutperform

View More Analyst Ratings for WFM
View the Latest Analyst Ratings



Head over to Benzinga to read more

Source: Benzinga




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