Market Overview

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

Share:
Whole Foods Bulls Proven Right? Analyst Says A Competing Bid Against Amazon Is Possible
Related WFM
Amazon Earnings Preview: Will Q4 Report Satisfy Investors?
Citi: After Whole Foods, Here's 7 More Retailers Amazon Could Buy
Related AMZN
Riot Blockchain Defends Pivot From Biotech To Crypto: 'Amazon Started Off Selling Books'
Did Walmart Meet Its Own Raised Profit Forecast? WMT Earnings On Tap
Roku, BHP Billiton Lead 4 Stocks In Bullish Bases With Earnings Due: S&P 500, Dow Jones, Nasdaq Futures (Investor's Business Daily)

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.”

tipranks.png

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

View More Analyst Ratings for WFM
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas News Reiteration M&A Analyst Ratings Movers Trading Ideas Best of Benzinga

 

Related Articles (AMZN + WFM)

View Comments and Join the Discussion!