UPDATE: Jefferies Downgrades Roundy's to Hold on Risk Confluence

Jefferies reduced its rating on Roundy's (NYSE: RNDY) from Buy to Hold and lowered its price target from

Jefferies noted, "The confluence of a tough economy as well as the impact from competitive store openings and an elevated promotional climate are leading to sales and margin pressure in the core business. At the same time, the Mariano's banner in Chicago appears to be exceeding expectations; however, these benefits are being outweighed by the headwinds. Net, net, EBITDA is coming down for FY12 and at this juncture FY13 does not look much better."

Roundy's closed at $10.23 on Thursday.

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.