Jefferies Upgrading Whole Foods Market

Jefferies & Co. is out with a research report on Whole Foods Market (NASDAQ: WFM) and is upgrading shares to Buy with a $90 price target.

In a note to clients, Jefferies & Co. writes, "We are upgrading Whole Foods to Buy and raising our price target to $90 (about 30x our CY13 EPS estimate) due to surprisingly strong comp momentum, a robust real estate pipeline and, in our opinion, significant opportunity to grow margins. Indeed, we now believe that the cmpany can see much better earnings growth than we had anticipated, suggesting investors will be well rewarded for owning the equity."

Shares of WFM gained $1.53 yesterday to close at $69.23.