Smart & Final Stores (SFS): Cutting Estimates on Deflation...Again - Guggenheim
- Wall Street again marks new highs in post-election run
- Broadcom Ltd. (AVGO) Tops Q4 EPS by 11c
- Restoration Hardware (RH) Tops Q3 EPS by 4c; Guides Well Below the Street
- Unusual 11 Mid-Day Movers 12/8: (COOL) (TLRD) (DRAM) Higher; (SHIP) (OHRP) (MLSS) Lower
- After-Hours Stock Movers 12/08: (FNSR) (AVGO) (GLPG) Higher; (XTLY) (RH) (DLTH) Lower (more...)
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
Guggenheim analyst, John Heinbockel, reiterated his Buy rating on Smart & Final Stores (NYSE: SFS) shares but cut the price target to $17 to reflect the ongoing adverse impact of product cost deflation.
Deflation is running at 2% in the 3Q and likely to persist through mid-2017. 2016E EBITDA gets cut by $11M to $181M and 2017E goes to $194M. This represents the second significant cut in 2 quarters but the analyst thinks it should be the last.
The PT drops to $17 from $19 but the BUY rating stays on the belief that “reflation” should occur in the next 6-9 months.
Shares of Smart & Final Stores closed at $13.45 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Downgrades Timken (TKR) to Hold
- BMO Capital Cuts Price Target on Comtech Telecom (CMTL) to $16 Following 1Q
- Jefferies Downgrades SL Green Realty (SLG) to Hold
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!