Amazon's (NASDAQ:AMZN) push into the food sector could become even more significant if Wedbush analyst Aaron Turner is correct with his post-Whole Foods takeover analysis.
Turner thinks Amazon will target GrubHub (NYSE:GRUB) with an offer of around $55 per share to give it a network of 9M active diners and a run rate of $3B in food sales (per Bloomberg). The suggested deal price is 27% higher than GrubHub's closing price last Friday.
Adding the GrubHub and Whole Foods businesses together could generate synergies on the delivery costs side of the equation and give consumers more options to bring in food products to their households via delivery.
The threat of Amazon impact pricing is a new wildcard for a large number of food companies, including Post Holdings (NYSE:POST), Pinnacle Foods (NYSE:PF), B&G Foods (NYSE:BGS), FLower Foods (NYSE:FLO), Campbell Soup (NYSE:CPB), Conagra Brands (NYSE:CAG), General Mills (NYSE:GIS), Kellogg (NYSE:K) and J.M. Smucker (NYSE:SJM).
Previously: Food stocks tremble after Amazon lands WFM (June 16)
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