Whole+Foods+NPV+report - Whole Foods shares were trading...

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Print | Close this window UPDATE 1-RESEARCH ALERT-Lehman cuts Whole Foods to underweight Fri Feb 15, 2008 12:49pm EST (Changes source, adds details, share movement) Feb 15 (Reuters) - Lehman Brothers downgraded Whole Foods Market Inc (WFMI.O: Quote , Profile , Research , Stock Buzz ), a natural and organic foods grocer, to "underweight" from "equal weight" and lowered its price target on the stock by $3 to $32. "Our most fundamental concern about WFMI is what we view as management's poor stewardship of capital, as exemplified by the high cost and negative NPV (net present value) of the recent Wild Oats acquisition," analyst Meredith Adler said in a note. The analyst also raised concerns about the company's ability to find ways of improving efficiency and its flexibility to respond to more cautious consumer behavior in the face of increasing competition. Whole Foods had acquired Wild Oats Market Inc for about $565 million in August last year, after a prolonged antitrust battle.
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Unformatted text preview: Whole Foods shares were trading down about 5 percent at $38.81 in afternoon trading on Nasdaq. (Reporting by Anuradha Ramanathan in Bangalore; Editing by Gopakumar Warrier) © Thomson Reuters 2008. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. UPDATE 1-RESEARCH ALERT-Lehman cuts Whole Foods to underw. .. http://www.reuters.com/articlePrint?articleId=USBNG33510420080215 1 of 1 2/15/2009 2:13 AM...
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This note was uploaded on 04/03/2010 for the course FINA FINA111 taught by Professor Lynnpi during the Spring '09 term at HKUST.

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