Goldman Sachs Raises EPS Forecast On Whole Foods Market, Maintains Neutral (WFMI)

Goldman Sachs raised its earnings per share forecast on Whole Foods Market

in a research report published today. This upgrade was not enough to persuade Goldman to raise its rating from Neutral, however. In the report, Goldman states, "We are raising our estimates to the high end of management's guidance as FY11/FY12/FY13 diluted EPS move to $1.90/$2.18/$2.54 from $1.79/$2.17/$2.53. While sales came in roughly in-line with expectations, we are increasing our estimates to reflect continued gross margin expansion, a lower tax rate and accelerating store expansion going forward... That said, we remain Neutral rated as upside from continue momentum is balanced with the risk that further margin expansion will be challenged by rising food, fuel and apparel prices heading into the 2H11." In today's trading, Whole Foods added 0.54% to its value and is currently standing at $60.06. Goldman currently has a price target of $64 on Whole Foods.