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Whole Foods Bulls Proven Right? Analyst Says A Competing Bid Against Amazon Is Possible

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Whole Foods Bulls Proven Right? Analyst Says A Competing Bid Against Amazon Is Possible

Oppenheimer analyst Rupesh Parikh sees additional upside for Whole Foods Market, Inc. (NASDAQ: WFM) after news broke Friday morning of its acquisition by Amazon.com, Inc. (NASDAQ: AMZN). Parikh maintains his Outperform rating and lifted his price target to $45.

“Last month, we highlighted a 50 percent probability for a takeout, and this is one of the outcomes that has materialized,” Parikh said. “We overall view a takeout value of $42 as undervaluing the company’s prospects and the powerful brand. In a takeout scenario, we estimated a value in the mid-$40’s range, so it appears there is some money being left on the table.”

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Another Bid For Whole Foods?

Parikh would not rule this possibility out given Whole Food’s strong management team and brand. He sees a potential bid resulting from a defensive measure to keep Jeff Bezos out of the grocery industry.

At time of publication, Whole Foods was up 29.84 percent at $42.92.

Related Links:

Amazon's Acquisition Of Whole Foods Should Create Lower Prices, Offer Better Consumer Experience

Sprouts Farmers: Buy The Dip, This Could Be The Next Takeout Target

Latest Ratings for WFM

DateFirmActionFromTo
Aug 2017BarclaysDowngradesOverweightEqual-Weight
Aug 2017Tigress FinancialDowngradesBuyNeutral
Jul 2017Wells FargoDowngradesOutperformMarket Perform

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View the Latest Analyst Ratings

 

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