UPDATE: Sterne Agee Initiates Whole Foods Market with Buy on Accelerated Store Growth Outlook

In a report published on Wednesday, Sterne Agee analyst Charles Grom initiated coverage on Whole Foods Market (NASDAQ: WFM) with a Buy rating and a price target of $61.00.

In the report, Sterne Agee noted, "Within the context of our Barbell Strategy (balancing strong fundamental stories with mean reversion candidates) and Bull vs Bear Study (see details herein), we are initiating with a Buy Rating and a $120 PT, implying ~20% upside. While valuation has kept many on the sidelines over the years, we feel the combination of: (1) solid LT 5-9% IDs; (2) ~9-10% sq. ft. growth; (3) rising EBIT margins; (4) improving returns - warrants a premium multiple, particularly in this attractive retail vertical."

Whole Food Market closed on Wednesday at $50.42.