SUPERVALU: Facing Industry Headwinds

Analysts at Deutsche Bank have maintained their “Hold” on SUPERVALU INC. (NYSE: SVU) , while lowering their estimates for the company. It also has reduced the price target by $3 to $14, citing, Kroger's EPS miss yesterday highlighted some key headwinds currently facing food retailers.

The Firm says “Kroger's EPS miss yesterday highlighted some key headwinds currently facing food retailers, including (1) accelerating food deflation; (2) a more cautious consumer; and (3) a more challenging competitive environment. We anticipate that Supervalu is experiencing these headwinds as well, and thus we are revising our estimates and price target lower.”

They have revised EPS estimates slightly. FY09 EPS estimate goes to $1.84 (-36% y/y) from $1.92, while our FY10 EPS estimate goes to $1.93 (+5.0%) from $2.02.