UPDATE: J.P. Morgan Raises PT on Roundy's Following Adjusted 1Q13 EPS
In a report published Tuesday, J.P. Morgan analyst Ken Goldman reiterated a Neutral rating on Roundy's (NYSE: RNDY), and raised the price target from $5.00 to $7.00.
In the report, Goldman noted, “Following recent earnings, we are maintaining our Neutral rating on RNDY. The company last week reported adjusted 1Q13 EPS of $0.19, $0.02 below the Bloomberg consensus, with better-than-expected sales and SG&A offset by a lower gross margin. Management reiterated guidance, and we are a bit more comfortable with the company's ability to forecast the impact from new competition. So while we remain concerned about continued declines in overall customer count, we are encouraged RNDY seems to be driving a bit better volume with its existing customers. Thus we are raising our sales growth estimate for FY13 to account for higher ticket growth. We also are boosting our Dec-13 price target to $7 to account for recently improved multiples in the space, and our EPS estimates go up slightly.”
Roundy's closed on Monday at $7.33.
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