First Global Reiterates Underperform on Safeway

First Global is out with its report today on Safeway (NYSE:

), reiterating Underperform. In a note to clients, First Global writes, "On the valuation front, the stock currently trades at a P/E of 12.2x our CY11 proforma diluted EPS of $1.72 and an EV/EBIDTA of 4.2x our CY11 estimates, which appears expensive in comparison to its peers, considering the company's declining margins and return ratios. We reiterate our rating of Underperform on Safeway." At the time of posting, shares of SWY were trading pre-market at $20.50, down 2.05% from Friday's close.