UPDATE: BMO Capital Markets Reiterates Outperform Rating, Raises PT on Safeway on 4Q12 EPS
In a report published Friday, BMO Capital Markets reiterated its Outperform rating on Safeway (NYSE: SWY), and raised its price target from $25.00 to $28.00.
BMO Capital Markets noted, “SWY reported 4Q12 EPS from continuing operations of $1.06, or $0.94 ex. a $0.12 gain vs. consensus of $0.76. Adjusted EPS benefitted ~$0.03 from a lower tax rate. FY12 EPS came in at $2.17 (or $2.29 including the settlement) above guidance of $1.90-$2.10. As a reminder, guidance always included property gains and the legal settlement. Most importantly, core operating profit ex. net property gains in both years was up 9.3%, while volumes were positive for the first time in ~5+ years.”
Safeway closed on Thursday at $22.97.
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