UPDATE: Goldman Sachs Resumes Coverage on SUPERVALU with Neutral Rating, $5 PT on Wide Risk-Reward

In a report published Friday, Goldman Sachs analyst Stephen Grambling resumed coverage on SUPERVALU

with a Neutral rating and $5.00 price target. In the report, Grambling noted, “We have removed the NR designation from Supervalu, Inc. (SVU) shares following the sale of five banners to AB Acquisition LLC and the completed tender offer by Symphony Investors. We now have a Neutral rating on SVU with a 12-month price target of $5 equating to 6% upside. Our FY13/14/15 estimates move to ($0.14)/($0.03)/$0.08 from $0.38/$0.15/$0.15 to reflect the sale of banners, the tender offer, and announced cost reductions. We also introduce FY16 EPS of $0.16.” SUPERVALU closed on Thursday at $4.71.