UPDATE: Goldman Sachs Downgrades Whole Foods to Neutral

Goldman Sachs cuts its rating on Whole Foods

to Neutral from Buy due to the limited share upside with regard to the new price target on shares, which at $88 is $3 higher than before. Goldman Sachs notes, "Our view of the fundamental story is unchanged: WFM is a secular winner, with significant opportunity to grow its store base, expand margins, and improve its return on capital. However, with only 2.8% upside to our upwardly revised price target, after increasing our estimates, we see better opportunities elsewhere in our coverage, prompting a Neutral rating. Since we added WFM to the Buy List on 7/10/11, the shares are + 33% vs. the S&P 500 +4.4%. Over the past 12 months, WFM is +35% vs. the S&P +7%." WFM closed at $85.59 a share on Wednesday.