Boston, MA 08/29/2014 (wallstreetpr) – Whole Foods Market, Inc.(NASDAQ:WFM)‘s stock tumbled on Thursday trading session by 1.55%, closing the day at low of $39.19 after Wedbush announced coverage of the company. The research firm now has a ‘neutral’ rating on the company with a share price target of $40, according to Benzinga.
The new rating comes amidst plans by Whole Foods Market, Inc. (NASDAQ:WFM) to remodel its 200 stores, by 2015. The remodeling will see the expansion of the company’s Freezers, dairy cases as well as the size of produce departments. Expansion plans come at the back of the company’s stock plummeting by 33% over the past one-year. Whole Foods has for some time been looking for ways to remain competitive, amidst increased competition in the space.
Wedbush analyst Kurt Frederick has pointed out that operating-margin expansion possibilities remain extremely subdued in the space. Whole Foods Market, Inc. (NASDAQ:WFM) has already been forced to lower its prices as one of the measures of trying to fend off competition. The natural and organic foods retailer has lowered its non-perishable foods prices as well as in the perishable category.
Investors have in the recent months aired their concerns about the company’s direction; this is in relation to the company’s stock being on a downward trend. Spending money on expansion and marketing remains a key play for the company as it looks to rejuvenate sales.
Despite the ongoing challenges in the market, Whole Foods Market, Inc. (NASDAQ:WFM) posted better than expected quarterly earnings on July 20, 2014. Earnings per share came in at $0.41, beating consensus estimates of $0.39 in the process. Quarterly revenue came in at $3.40 billion against estimates of $3.39 billion.
The Street research firm currently rates Wholes Food as a ‘buy’ reiterating strengths in its revenue growth as well as earnings per share and an increase in net income.