Piper Jaffray: Whole Foods Market is Improving Margins

According to a recent research report published by Piper Jaffray, Whole Foods Market WFM stock warrants a premium valuation. In the report, Piper Jaffray said, “We note Hain Celestial's recent quarterly earnings report discussed U.S. consumption trends of +7%, consistent with last quarter. In addition, we believe Costco's sales, which accelerated in the month of January, are a good proxy for WFM, given overlap with a high income consumer. Finally, we believe returns on invested capital are rapidly improving as productivity in the chain rises. Overall, we continue to believe in the secular trends in natural and organic products and believe Whole Foods is the best way to play this trend.” Piper Jaffray maintains its Overweight rating and $82 PT on Whole Foods Market, which closed Friday at $76.25.