Citigroup Reiterates Sell Rating For Safeway (SWY)

Citigroup analyst Deborah L Weinswig reiterated her Sell rating for shares of Safeway Inc. (NYSE: SWY) with a target price of $16.

Although the analyst was largely positive in her coverage of Safeway Inc., weakness in consumer demand was her biggest concern.

The Citigroup analyst wrote that, "management was very upbeat at Day (Night) 1 of SWY’s Investor Conference, which we believe is being driven by improved trends this quarter versus fourth quarter, and optimism surrounding 2010 vs. 2009 due to more normalized price investments and moderating deflation. However, we continue to be concerned about weak consumer demand impacting top line and margins."