Jefferies Group Initiates Coverage on Safeway (SWY)
Equities research analysts at Jefferies Group initiated coverage on shares of Safeway (NYSE:SWY) in a research note issued to investors on Monday, TheFlyOnTheWall.com reports. The firm set a “hold” rating and a $32.00 price target on the stock. Jefferies Group’s price objective would indicate a potential upside of 1.65% from the company’s current price.
The analysts wrote, “In June/July, Safeway valuation was in a confused state with the core grocery business trading at only 4.0x EV/EBITDA after adjusting for the recent Canada sale and removing Blackhawk value. With the arrival of an activist, valuation has now reached 5.1x. Marking to market, we believe Safeway needs to turn around declining EBITDA to move the stock from here. We’re not convinced the company’s three sales initiatives will do it.”
In other Safeway news, SVP Melissa Plaisance sold 54,000 shares of the stock on the open market in a transaction dated Tuesday, September 24th. The stock was sold at an average price of $32.00, for a total transaction of $1,728,000.00. Following the completion of the sale, the senior vice president now directly owns 23,872 shares of the company’s stock, valued at approximately $763,904. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.
Several other analysts have also recently commented on the stock. Analysts at Deutsche Bank initiated coverage on shares of Safeway in a research note to investors on Wednesday, September 25th. They set a “buy” rating and a $37.00 price target on the stock. Separately, analysts at Barclays Capital upgraded shares of Safeway from an “underweight” rating to an “equal weight” rating in a research note to investors on Monday, September 23rd. They now have a $30.00 price target on the stock, up previously from $20.00. Finally, analysts at Credit Suisse upgraded shares of Safeway from an “underperform” rating to an “outperform” rating in a research note to investors on Friday, September 13th. Two analysts have rated the stock with a sell rating, seven have assigned a hold rating and eight have issued a buy rating to the stock. Safeway presently has a consensus rating of “Hold” and a consensus price target of $28.42.
Safeway (NYSE:SWY) traded down 0.57% during mid-day trading on Monday, hitting $31.30. 358,864 shares of the company’s stock traded hands. Safeway has a 52 week low of $15.00 and a 52 week high of $32.72. The stock’s 50-day moving average is $28.72 and its 200-day moving average is $25.75. The company has a market cap of $7.471 billion and a P/E ratio of 14.32.
Safeway (NYSE:SWY) last posted its quarterly earnings results on Thursday, July 18th. The company reported $0.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.01. The company had revenue of $8.70 billion for the quarter, compared to the consensus estimate of $10.45 billion. During the same quarter in the previous year, the company posted $0.50 earnings per share. The company’s revenue for the quarter was down 1.6% on a year-over-year basis.
Safeway Inc (NYSE:SWY) is a food and drug retailer in North America.
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