Deutsche Bank analyst Karen Short says her firm's recent pricing study in New York showed that Trader Joe's had a "significant advantage" versus Whole Foods (WFM). When Trader Joe's reached 300 stores in 2013, it launched price investments across 200 items, catching Whole Foods off guard, Short tells investors in a research note. Based on industry checks, the analyst believes Joe's next price reduction could occur at the 500 unit mark, which is around where the company sits today. She believes Whole Foods may be caught off again as her channel checks showed a "meaningful" price gap exists between the two chains. Short believes Trader Joe's pricing could be a headwind for Whole Foods. She keeps a Hold rating on the shares with a $28 price target.