Goldman Sachs: Safeway's Management Optimistic at Throughout Analyst Day

In a research report published today by Goldman Sachs, Safeway Inc.'s

management remained optimistic in tone at its investor conference. In the report, Goldman Sachs went on to say, “Despite management's positive tone, SWY shares fell 5.5% vs. -1.5% S&P 500 on the day, in our view as investors remained concerned that EBIT growth would remain under pressure in FY12. We were impressed with the potential of the Just for u platform, but remain concerned over the potential competitive response and margin implications of widespread digital couponing. Furthermore, we believe moderating inflation and increasing competition will trump these initiatives in the near term.” Goldman Sachs maintains its Sell rating and $18.50 PT on Safeway, which closed yesterday at $20.89.