Barclays Updates PT and Estimates on SAFEWAY (SWY); 'Just For U' vs. Liquidity
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Price: $24.11 -1.03%
Rating Summary:
5 Buy, 7 Hold, 6 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
5 Buy, 7 Hold, 6 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade SWY Now!
Barclays maintains an 'Equalweight' on SAFEWAY (NYSE: SWY) price target of $18.00 (from $22.00).
Analyst, Meredith Alder, sees Safeway's 'Just for U' program starting to get some attention, citing positive volumes in regions where the program has been implemented. With the potential savings of 10-20%, she expects sign ups to continue gaining momentum throughout the year. Adler has even raised Q4 EPS expectations from $0.77 to $0.81.
However, the real issue lies with the equity and debt markets, with concerns on the company's leverage and liquidity, especially after SWY announced a $2.1 billion, debt-funded stock buyback plan. Alder's opinion is that a real liquidity issue is unlikely, but she doesn't expect investors to be any more calm about it. For FY12, she raises EPS estimates from $1.97 to $2.01 and for FY13, EPS gets bumped from $2.04 to $2.06.
For an analyst ratings summary and ratings history on SAFEWAY click here. For more ratings news on SAFEWAY click here.
Shares of SAFEWAY closed at $15.55 yesterday, with a 52 week range of $14.73-$23.16.
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Analyst, Meredith Alder, sees Safeway's 'Just for U' program starting to get some attention, citing positive volumes in regions where the program has been implemented. With the potential savings of 10-20%, she expects sign ups to continue gaining momentum throughout the year. Adler has even raised Q4 EPS expectations from $0.77 to $0.81.
However, the real issue lies with the equity and debt markets, with concerns on the company's leverage and liquidity, especially after SWY announced a $2.1 billion, debt-funded stock buyback plan. Alder's opinion is that a real liquidity issue is unlikely, but she doesn't expect investors to be any more calm about it. For FY12, she raises EPS estimates from $1.97 to $2.01 and for FY13, EPS gets bumped from $2.04 to $2.06.
For an analyst ratings summary and ratings history on SAFEWAY click here. For more ratings news on SAFEWAY click here.
Shares of SAFEWAY closed at $15.55 yesterday, with a 52 week range of $14.73-$23.16.
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Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
Barclays, Stock Buyback
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