Whole Foods Prices Drop, But Sluggish Sales Likely To Continue, Says Analyst
October 2, 2014 | 1 min to read
Despite a variety of recent initiatives to attract customers and grow sales by Whole Foods Market Inc., a report issued Monday by Stern Agee analyst Charles Grom advises investors to remain cautious when considering buying the Austin company's shares.
"While we've been long-term fans of CEO Walter Robb and the team down in Austin, we struggle with… what the appropriate multiple for the stock is in light of slowing sales," Grom's report said. "Bottom line: [Whole Foods' stock] is likely range bound ($35-40) for the foreseeable future."
Grom maintained his estimates for fourth quarter earnings per share at 32 cents. Likewise, he also maintained earnings per share estimates for the full 2014 fiscal year at $1.54. But looking to the end of the 2015 fiscal year, Grom lowered the full-year earnings per share estimate from $1.74 to $1.65. As a result, he lowered Whole Foods Market (Nasdaq: WFM) target share price to $37 from $40.
To read the rest of the story, please go to: Austin Business Journal