UPDATE: Deutsche Bank Reiterates Hold on SuperValu; Lowers PT from $7.00 to $2.50
Deutsche Bank maintained a Hold rating on SuperValu (NYSE: SVU) and lowered its price target from $7.00 to $2.50.
Deutsche Bank commented, “1Q results were weak, underscoring the secular challenges facing SVU. On the back of the sharp ID/EPS decline, SVU initiated a review of strategic alternatives, which could result in sale of all or part of the business and yesterday (7/30) the Board announced that former CEO Craig Herkert would be stepping down with Wayne Sales taking over. Given high leverage, declining margins, and depressed multiples for conventional grocery assets, finding attractive bids will not be easy.”
SuperValu closed at $2.24 on Monday.
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