UPDATE: Cantor Fitzgerald Downgrades Whole Foods Market on Valuation

In a report published Monday, Cantor Fitzgerald analyst Ajay Jain downgraded Whole Foods Market WFM from Buy to Hold, but raised the price target from $52.00 to $54.00.

In the report, Cantor Fitzgerald noted, “We are downgrading Whole Foods to HOLD on valuation and raising the price target slightly from $52 to $54. At current levels, the price target is directionally inconsistent with a BUY rating, and we don't believe there is sufficient basis to raise estimates materially at this time. WFM is set to report its 3Q results on Wednesday, 7/31, after the close. Our estimates are unchanged heading into the print. While our 3Q EPS estimate of $0.36 is a penny below consensus, we don't think there is any meaningful read thru as it relates earnings. The main area of potential caution on our end is the cost associated with the remodeling work related to six former Johnnie's Foodmaster locations in Boston (almost all of this expense is expected to be absorbed in 2H).”

Whole Foods Market closed on Friday at $55.97.