Jefferies Raises PT On SVU To $9.50
Jefferies has raised its price target on Supervalu Inc. (NYSE: SVU) from $8 to $9.50 despite concern in the company's sales trends.
In the report, Jefferies states, “Management continues to do a good job of reducing costs, but underlying sales and traffic trends remain very, very troubling. Indeed, while EBITDA in 4Q was “strong” it appeared to come at a fairly big price – further market share erosion. While we know the team is working hard, it does seem short-term profits/debt pay-down took priority despite a multi-year decline in many of its operating units.”
Jefferies maintains a Hold rating on the stock.
SVU closed at $10.67 yesterday.
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