NEW YORK (TheStreet) -- Shares of Whole Foods Market (WFM) are moving higher on Wednesday, after what TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, called an "intelligent upgrade" from Sterne Agee.
The analyst upgraded the stock to buy from hold and assigned a price target of $60 per share. "I think this is a good call," Cramer said on CNBC's "Mad Dash" segment.
The company's initiatives, ad campaigns and more competitive pricing are working, Cramer added.
It also helps that other companies in the natural and organic grocery business, like Fairway (FWM) , Sprouts Farmers Market (SFM) - Get Report , and The Fresh Market (TFM) , are all struggling with different issues right now.
Although Whole Foods shares are flat on the year, the stock had fallen more than 40% from its 2014 highs, as it badly underperformed the broader market last year.
"This stock can go to $60," Cramer said, now that the company is on the right track.
Maybe the stock will stall in the short term, Cramer acknowledged. But Wal-Mart seems "re-energized" and is doing a good job with its current initiatives, such as opening smaller Neighborhood Market stores, he said.
"This is the ultimate gasoline play other than dollar stores," Cramer added, as Wal-Mart stands to benefit from an increase in disposable income among consumers. So while the stock may struggle in the near term, it seems destined to go higher in the long term.
-- Written by Bret Kenwell
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.