UBS Reiterates a 'Sell' on SAFEWAY (SWY); 20th Century Strategies Are Unlikely To Work Today
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Price: $24.31 --0%
Rating Summary:
5 Buy, 7 Hold, 6 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 0 | Down: 1 | New: 6
Rating Summary:
5 Buy, 7 Hold, 6 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 0 | Down: 1 | New: 6
Trade SWY Now!
UBS reiterates a 'Sell' on SAFEWAY (NYSE: SWY) price target of $14.00 (from $17.00).
Analyst, Jason DeRise, said, "We remain skeptical that Safeway can stabilize profits following its third straight quarter of 13%-14% EBIT declines. SWY’s core problem is similar to other supermarkets: supermarkets became the worst place to buy groceries (see our May 24 note). Service has been commoditized by (1) stores that meet specific grocery shopping needs ("stock up", "fill in", "immediate use", special assortment) and (2) every day low price (EDLP) formats. Today, the old "high-low" price strategy drives deal seeking behavior. 20th century strategies are unlikely to work today."
FY12 EPS estimate from $2.04 to $2.02 and FY13 from $1.99 to $1.90.
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 $15.09 yesterday, with a 52 week range of $14.73-$23.16.
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Analyst, Jason DeRise, said, "We remain skeptical that Safeway can stabilize profits following its third straight quarter of 13%-14% EBIT declines. SWY’s core problem is similar to other supermarkets: supermarkets became the worst place to buy groceries (see our May 24 note). Service has been commoditized by (1) stores that meet specific grocery shopping needs ("stock up", "fill in", "immediate use", special assortment) and (2) every day low price (EDLP) formats. Today, the old "high-low" price strategy drives deal seeking behavior. 20th century strategies are unlikely to work today."
FY12 EPS estimate from $2.04 to $2.02 and FY13 from $1.99 to $1.90.
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 $15.09 yesterday, with a 52 week range of $14.73-$23.16.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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