UPDATE: Citi Upgrades Safeway; Raises PT

According to a research report published this morning, Citi has upgraded Safeway (NYSE: SWY) from Neutral to Buy, and raised PT from $22 to $26.

In the report, Citi said, "We are upgrading SWY to Buy, from Neutral, based on: 1) topline growth driven by Just For You (J4U), a return to eating at home, and pharmacy share gains; 2) gross margin expansion from moderating inflation, falling gas prices, and reduced shrink; and 3) continued cost discipline. We believe valuation is attractive as the stock is trading at a 7.9x multiple on our 2013 EPS estimate of 2.34, vs. our 11x target and SWY's 10-year median of 12.1x."

Safeway is currently trading at $18.87.

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