Loop Capital today initiated coverage of Whole Foods Market (WFM) with a "Hold" rating and a $35 price target.
Loop Capital analyst Andrew Wolf noted that grocery chains like Kroger (KR) and Costco (COST) are capturing a majority of the growth in the natural foods space, leaving little opportunity for natural food retailers like Whole Foods.
Wolf also noted that a takeover of Whole Foods, in its current fundamental condition, would fetch a price of $40 per share. The stock currently trades at about $36 per share.
Whole Foods was upgraded at Wells Fargo last week to "Outperform" from "Market Perform" with an increased price target of $42.
Shares of Whole Foods were higher during mid-morning trading on Tuesday.
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