UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Safeway on 4Q EPS

In a report published Friday, Deutsche Bank reiterated its Hold rating on Safeway

, and raised its price target from $17.00 to $23.00. Deutsche Bank noted, “SWY reported 4Q EPS that was $0.30 above expectations – a huge beat even excl. the $0.12 litigation gain. Even before the print, SWY had outperformed, helped by interest from activist investors. The post-4Q strength in the shares appears to be more fundamentally-driven. Initiatives like ‘just for U' and the Fuel Rewards program are gaining traction and should soon be augmented by the Wellness initiative, which is expected to launch sometime in 2Q. Expectations have now shifted meaningfully higher going into the investor conference on March 6 when SWY will provide FY13 guidance. At 10x our FY13 EPS est., we see the risk/reward as balanced. Hold.” Safeway closed on Thursday at $22.97.