Jim Cramer Says 'You Want To Own' Whole Foods

Analysts at Credit Suisse upgraded of Whole Foods Market, Inc. WFM to Outperform from Neutral with a price target boosted to $40 from a previous $30.

Analyst Edward Kelly argued Whole Foods' stock represents a "unique opportunity" to won a specialty food retailer at the "early stages of a re positioning that should reinvigorate growth."

The analyst highlighted Whole Foods' new store concept called "365" which allows the company to "reach markets where demographic constraints make its core stores uneconomical."

Jim Cramer agrees with Kelly's analysis and offered his own take on why investors "want to own" Whole Foods' stock during his daily "The Mad Dash" segment.

According to Cramer, Whole Foods' 365 concept is a "work in progress" but will ultimately prove to be a winner. He also suggested the company is at fore-front of customer relations and engaging with the customer base.

Cramer highlighted that Whole Foods' comps are close to bottoming at a time when the company is investing in price.

Moreover, Cramer pointed out that several of Whole Foods' peers, such as Fairway Markets, are struggling while The Fresh Market entered into a deal to go private.

Moreover, Sprouts Farmers Market Inc SFM entered into a deal with Amazon.com, Inc. AMZN - a desperation move that is only done when a company "needs some help to grow."

Cramer said investors often forget Whole Foods is the "premium retailer" in the organic food space and consumers trust its private label brand.

Finally, Cramer pointed out that Whole Foods' management was active in buying back its own stock when it was trading at multi-year low levels.

"They had an understanding of their prowess," Cramer said. "I think they are back - I think the stock is cheap and I think you want to own it."