UPDATE: Credit Suisse Maintains on Safeway, Notes It May Be Exploring Strategic Alternatives
Safeway (NYSE: SWY) is scheduled to release its fourth quarter 2013 earnings Wednesday, February 19 followed by a 5:00 p.m. (EST) conference call. In the lead up to this, Credit Suisse released a note Tuesday commenting on the "low visibility" of Safeway's management.
Credit Suisse's Edward Kelly took the lead on Tuesday's note. Kelly noted the lack of communication from Safeway's management to be "curious," especially amid a possible change in strategy.
In addition to the recent silence of Safeway's management, Kelly noted that despite receiving $4 billion in proceeds from the sale of Canadian locations, which were marked for debt reduction and share repurchases, Safeway has performed "minimal" share repurchase or debt reduction. Perhaps the company is waiting to see the how Wednesday's earnings report will affect share prices.
Amid these actions, Credit Suisse has maintained an Outperform rating and has set the price target at $40.
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