UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on SUPERVALU

In a report published Friday, BMO Capital Markets reiterated its Market Perform rating on SUPERVALU

, and raised its price target from $2.00 to $4.00. BMO Capital Markets noted, “Yesterday, SVU announced that it is selling five of its retail banners to a Cerberus-lead investor group for $3.3 billion ($3.2 billion assumption of debt plus $100 million in cash). The divested banners include Albertsons, Acme, Jewel-Osco, Shaw's and Star Market, and represent 877 stores (80% of conventional stores) and ~$17.5 billion in sales. The remaining SVU will consist of the Cub, Farm Fresh, Shoppers, Shop 'n Save, and Hornbacher's conventional banners, in addition to the Independent (Supply) and Save-A-Lot businesses. The retained conventional stores are predominantly nonunion (Cub and Shopper's are union) and almost entirely leased.” SUPERVALU closed on Thursday at $3.47.