Market Overview

UPDATE: Bank of America Raises PO to $18 on Safeway; Sale of Canada Assets Unlikely

Related SWY
Benzinga's M&A Chatter for Tuesday December 23, 2014
Safeway Shares Pop On $830 Million Asset Sale
A 'Big and Strong' Stock Play (Fox Business)

Bank of America maintained Safeway (NYSE: SWY) with an Underperform rating and raised the price target from $15.00 to $18.00.

Bank of America commented, "Since hitting a low late July, SWY's stock has rallied in recent months we believe in part due to press speculation that SWY may sell its assets in Canada (CA). … [W]e evaluate seven key reasons that we have been hearing on why a sale of SWY CA might make sense. Our analysis of these factors leads us to believe that 5 of the 7 factors are unlikely valid reasons in favor of a sale, while only two are possibly valid reasons supportive of a potential sale. Our conclusion is that given an outlook for potentially peaking margins in CA due to an expectation for increasing competition in CA from discount food retailers, Canadian retailers may not be inclined to pay lofty acquisition premiums, making a transaction unlikely, in our view."

Safeway closed at $20.42 on Friday.

Latest Ratings for SWY

DateFirmActionFromTo
Apr 2014Cantor FitzgeraldMaintainsHold
Apr 2014Deutsche BankMaintainsHold
Apr 2014JefferiesMaintainsHold

View More Analyst Ratings for SWY
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Price Target Analyst Ratings

 

Related Articles (SWY)

Around the Web, We're Loving...

Get Benzinga's Newsletters