Market Overview

UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on SUPERVALU

Share:
Related SVU
Supervalu's New CEO Is An 'M&A Specialist'
Mid-Afternoon Market Update: Dow Surges Over 250 Points; Ambarella Shares Tumble
The Dirt Cheap Value Portfolio: One Man's Trash, Is Another Man's Treasure (Seeking Alpha)

In a report published Friday, Citigroup reiterated its Neutral rating on SUPERVALU (NYSE: SVU), and slightly raised its price target from $3.00 to $4.00.

Citigroup noted, “SVU reported F3Q13 adj. EPS of $0.03, below our est. of $0.04 and consensus of $0.05, driven by lower-than-expected IDS and worse S&A deleverage, offset by a higher gross margin. The company also announced the sale of five retail grocery banners to a Cerberus-led investor group for $100M in cash and $3.2B of debt, and an equity investment from a Cerberus-led consortium. We had viewed Jewel (which was sold) and Save-A-Lot (which was not) as the most attractive banners. While not deleveraging, the transaction will remove some of the weakest banners, incl. Shaw's/Star Market and Albertsons, and the remaining banners should not require as much price investment. We are raising our target price to $4, up from $3 previously, and we reiterate our Neutral/High Risk rating.”

SUPERVALU closed on Thursday at $3.47.

Latest Ratings for SVU

DateFirmActionFromTo
Jan 2016Deutsche BankDowngradesHoldBuy
Jan 2016Telsey Advisor GroupDowngradesOutperformMarket Perform
Jan 2016Credit SuisseMaintainsNeutral

View More Analyst Ratings for SVU
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color Price Target Analyst Ratings

 

Related Articles (SVU)

View Comments and Join the Discussion!

Get Benzinga's Newsletters