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UPDATE: Jefferies Initiates Coverage on Safeway on Need for Fundamental Turn

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In a report published Tuesday, Jefferies analyst Mark Wiltamuth initiated coverage on Safeway (NYSE: SWY) with a Hold rating and $32.00 price target.

In the report, Jefferies noted, “In June/July, Safeway valuation was in a confused state with the core grocery business trading at only 4.0x EV/EBITDA after adjusting for the recent Canada sale and removing Blackhawk value. With the arrival of an activist, valuation has now reached 5.1x. Marking to market, we believe Safeway needs to turn around declining EBITDA to move the stock from here. We're not convinced the company's three sales initiatives will do it.”

Safeway closed on Monday at $31.48.

Latest Ratings for SWY

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

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Posted-In: Jefferies Mark WiltamuthAnalyst Color Initiation Analyst Ratings

 

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