Deutsche Bank Downgrades SUPERVALU to Hold

Deutsche Bank has published a research report on SUPERVALU SVU and has downgraded the company from Buy to Hold after the company reported 3Q results. In the report, Deutsche Bank writes, "On the back of SVU's 3Q results, we are moving to the sidelines, downgrading to Hold from Buy and moving our PT to $7.50 from $10. We have 3 main concerns: (1) traffic trends appear likely to remain under pressure in ‘12, despite progress from SVU's transformation initiatives; (2) moderating inflation as the year progresses could make it difficult to drive average ticket and comp, and (3) 4Q EPS may be at risk given the implied ID sales improvement. Net, we believe it's prudent to downgrade the stock." Deutsche Bank has also lowered the price target from $10 to $7.50 on SUPERVALU, which is currently trading down $0.95 from yesterday's $8.39 closing price.