UPDATE: UBS Upgrades SUPERVALU (SVU) to Neutral; Covenant Risk is Removed; Chance of Turnaround Improved
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Price: $6.45 -0.46%
Rating Summary:
1 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
1 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade SVU Now!
(Updated - July 12, 2012 10:28 AM EDT)
UBS upgraded SUPERVALU (NYSE: SVU) from Sell to Neutral, price target lowered from $4.50 to $4.00.
Analyst, Jason DeRise, said, "SVU announces big changes, improves chance of turning around in Long-Term...Significant operational challenges persist in Near-Term"
"We update to Neutral because the covenant risk is removed, but would not recommend buying given the operational headwinds. Our target price implies a PE of 6.3x 2012CY EPS and 5.7x 2012CY EV/EBITDA estimates. We no longer assume a 30% weighting to the bear case covenant breach scenario, but no longer assume a 20% weighting to the bull case SOTP."
DeRise lowers FY13 EPS estimate from $1.23 to $0.63 and FY14 from $1.25 to $0.64.
For an analyst ratings summary and ratings history on SUPERVALU click here. For more ratings news on SUPERVALU click here.
Shares of SUPERVALU closed at $5.29 yesterday, with a 52 week range of $4.05-$9.44.
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UBS upgraded SUPERVALU (NYSE: SVU) from Sell to Neutral, price target lowered from $4.50 to $4.00.
Analyst, Jason DeRise, said, "SVU announces big changes, improves chance of turning around in Long-Term...Significant operational challenges persist in Near-Term"
"We update to Neutral because the covenant risk is removed, but would not recommend buying given the operational headwinds. Our target price implies a PE of 6.3x 2012CY EPS and 5.7x 2012CY EV/EBITDA estimates. We no longer assume a 30% weighting to the bear case covenant breach scenario, but no longer assume a 20% weighting to the bull case SOTP."
DeRise lowers FY13 EPS estimate from $1.23 to $0.63 and FY14 from $1.25 to $0.64.
For an analyst ratings summary and ratings history on SUPERVALU click here. For more ratings news on SUPERVALU click here.
Shares of SUPERVALU closed at $5.29 yesterday, with a 52 week range of $4.05-$9.44.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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