Whole Foods Market (WFM) Stock Upgraded at RBC Capital Markets

NEW YORK (TheStreet) -- RBC Capital Markets upgraded Whole Foods Market (WFM) to "outperform" from "sector perform" on Thursday.

Shares of Whole Foods were falling 13% to $41.50 Thursday morning following the company's disappointing fiscal second quarter comparable store sales.

The analyst firm lowered its price target for the grocery store to $51 from $54.

RBC also raised its 2015 and 2016 EPS estimates for Whole Foods to $1.73 and $1.93 a share, up from $1.72 and $1.92 a share, respectively.

"While comparable store sales were disappointing for 2Q and through May 3rd, we believe comps can now accelerate," analyst William Kirk wrote. "Easing intra-quarter/back-half, prior-year comparables and the cumulative effects of store refreshes should lead to sequential improvements. We also believe Whole Foods is addressing our unit expansion concerns by announcing a likely cheaper/smaller new format."

TheStreet Ratings team rates WHOLE FOODS MARKET INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate WHOLE FOODS MARKET INC (WFM) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

You can view the full analysis from the report here: WFM Ratings Report

WFM ChartWFM data by YCharts

More from Markets

Global Stocks Hold Gains as North Korea Response on Talks Soothes Nerves

Global Stocks Hold Gains as North Korea Response on Talks Soothes Nerves

Canopy Growth Lets Down Eager Pot Investors; PayPal Keeps Dominating -- ICYMI

Canopy Growth Lets Down Eager Pot Investors; PayPal Keeps Dominating -- ICYMI

Dow, S&P 500 and Nasdaq Tumble After Trump Calls Off North Korea Summit

Dow, S&P 500 and Nasdaq Tumble After Trump Calls Off North Korea Summit

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists