UPDATE: Guggenheim Lowers SUPERVALU's PT

According to a research report published earlier today, Guggenheim has lowered SUPERVALU's

PT from $8.75 to $7. In the report, Guggenheim said, “SVU shares trade at a modest 4.2x EBITDA multiple, and we think a 72M share short position likely limits the downside risk. However, we expect an ongoing difficult economic environment marked by disinflation and the cycling of the payroll tax cut to pressure comps and EBIT. We are lowering our PT to $7 from $8.75. 4Q results were a mixed bag (see Exhibits 1-2). Comps did improve to (1.9)%, largely due to an increase in traffic. However, this was partially the product of sizable price investments—GP declined 5%, down from 3Q's 2% drop. This suggests to us that the business has yet to really stabilize.” Guggenheim maintains its Neutral rating on SUPERVALU, which closed yesterday at $6.13.