UBS Upgrades Whole Foods to Neutral; Target $36.00 (WFMI)

UBS upgraded Whole Foods Markets (NASDAQ:WFMI) to Neutral from Sell and raised its price target to $36.00 from $16.00 based on valuation and sales improvement.

Analyst Neil Currie said, "Following the company's solid 1Q results and raise of FY2010 guidance, we have become more constructive on the company's medium-term outlook, particularly on sales improvement. We remain cautious on further improvements to margins as the company begins to lap more difficult compares into 2H2010, but think shares look solid here."

For 2010, the bank expects the company to report EPS of $1.36, versus consensus estimates of $1.24.