Safeway Given New $31.00 Price Target at Citigroup Inc. (SWY)
Equities researchers at Citigroup Inc. boosted their target price on shares of Safeway (NYSE:SWY) from $27.00 to $31.00 in a research report issued on Tuesday, Analyst Ratings Network.com reports. The firm currently has a “neutral” rating on the stock. Citigroup Inc.’s price objective would suggest a potential downside of 8.15% from the stock’s previous close.
The analysts wrote, “SWY reported 3Q13 EPS of $0.10 from cont. ops, excl. Canada and (-$0.03)/share impairment and incl. Chicago, below our est. of $0.17 and consensus of $0.16, and vs. $0.16 LY. ID sales ex-fuel were essentially in-line with our est., while GM and O&A leverage fell short. In addition, SWY has announced intentions to exit Chicago by early 2014, resulting in a cash tax benefit of $400-450M. The company will sell the 72 stores piecemeal, with 4 already gone to New Albertsons. We are pleased with the decision and speedy progress and we believe there could be further opportunities to unlock additional shareholder value through non-core asset divestitures, but for now SWY is still closing on Chicago and Canada. We reiterate our Neutral rating and raise our target price to $33, vs. $31 prev.”
A number of other firms have also recently commented on SWY. Analysts at Jefferies Group initiated coverage on shares of Safeway in a research note to investors on Monday, October 7th. They set a “hold” rating and a $32.00 price target on the stock. Separately, 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. Finally, 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. Two analysts have rated the stock with a sell rating, six have assigned a hold rating and eight have given a buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average price target of $32.08.
Shares of Safeway (NYSE:SWY) traded down 1.15% on Tuesday, hitting $33.3625. 1,974,857 shares of the company’s stock traded hands. Safeway has a one year low of $15.50 and a one year high of $33.91. The stock’s 50-day moving average is $29.31 and its 200-day moving average is $25.92. The company has a market cap of $7.987 billion and a price-to-earnings ratio of 18.68.
Safeway (NYSE:SWY) last issued its quarterly earnings data on Thursday, October 10th. The company reported $0.10 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by $0.08. The company had revenue of $8.62 billion for the quarter, compared to the consensus estimate of $8.53 billion. During the same quarter in the previous year, the company posted $0.16 earnings per share. The company’s revenue for the quarter was up 1.1% on a year-over-year basis. On average, analysts predict that Safeway will post $1.04 earnings per share for the current fiscal year.
Safeway Inc (NYSE:SWY) is a food and drug retailer in North America.
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