JP Morgan Sees Potential Corporate Action for Safeway

JP Morgan has published a research report on Safeway

commenting on the company's possibility of corporate action. In the report, JP Morgan writes, "In our opinion, six actions have been taken by Safeway lately that, considered together, potentially increase the likelihood that the company could be considering a corporate action. The company has not indicated it is planning any M&A activity; indeed, on its own, each of the company's recent actions arguably has an alternate purpose. But the combination of such activities in a short period of time makes us wonder whether a corporate action such as a Reverse Morris Trust (

) or a leveraged buyout (LBO) is a possibility." JP Morgan maintains its Neutral rating and $23 price target on Safeway, which is currently trading up $0.57 from yesterday's $20.67 closing price.