Her new target was the result of combining her "upside" scenario, which contemplated a "take-out" multiple of nine times EBITDA for a price $57 a share, and a downside scenario of $42 per share, should Amazon.com's current offer finally prevail.
For now, Whole Foods seems happy with the deal. Call options with a striking price of $42 have become very popular; the 42-strike calls expiring in January and the 42-strike calls expiring in August were two of the most heavily traded options Friday.
Barclays analyst Karen Short raised her Whole Foods price target to $48 from $38 and upgraded the stock to overweight from equal-weight, citing the possibility of counterbids.
Amazon's planned acquisition of Whole Foods is expected to make the low-margin supermarket industry even more competitive.
For consumers, more convenience could eventually come at a higher cost.
Some see a robust case for betting on higher Whole Foods prices. She raised her price target on the company to $48 - almost 15 percent higher than Amazon's bid.
"Retailers have always used door-buster prices to get people in the stores so they can buy more", Sakraida said. Amazon said Whole Foods would continue to operate its stores under the same brand, source and use the same vendors, and John Mackey will remain its CEO.
"In theory, all retailers that sell food and compete with AMZN" are potential bidders "because we think most have too much to lose not to bid", Short wrote in a Friday research note.
Wal-Mart Stores Inc could have sufficiently deep pockets to make a counter bid and other grocery rivals such as Kroger or Albertsons Cos Inc would have the motivation, he said.
Oppenheimer analyst Rupesh Parikh agreed.