Barclays Maintains an 'Equalweight' on SUPERVALU (SVU); 4Q11 Earnings Preview
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Price: $32.49 --0%
Rating Summary:
1 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Equalweight' on SUPERVALU (NYSE: SVU), PT $8.
Barclays analyst says, "Our forecast has total sales of $8.6B, with retail sales of $6.6B based on a 4.9% decline in id's and fewer stores. Our forecast for distribution sales is $2.0B, a 0.5% y-o-y decline. We expect retail EBITDA margins to narrow by 110 bp, to 5.5%, as a result of intense price competition and additional price investments. Distribution EBITDA margins are forecast to increase 5 bp, to 4.9%, while the operating margin for total SVU is forecast to decline by ~100 bp compared to last year."
"SVU is trying to change its go-to-market strategy by improving both prices and the shopping experience, but this has not translated to improved performance given the difficult, highly competitive environment and cost inflation pressures...Despite these challenges, we think cash flow remains solid, and we expect the company to continue to pay down debt. Nonetheless, we think the stock is fully valued right now."
For more ratings news on SUPERVALU click here and for the rating history of SUPERVALU click here.
Shares of SUPERVALU closed at $9.42 yesterday.
Barclays analyst says, "Our forecast has total sales of $8.6B, with retail sales of $6.6B based on a 4.9% decline in id's and fewer stores. Our forecast for distribution sales is $2.0B, a 0.5% y-o-y decline. We expect retail EBITDA margins to narrow by 110 bp, to 5.5%, as a result of intense price competition and additional price investments. Distribution EBITDA margins are forecast to increase 5 bp, to 4.9%, while the operating margin for total SVU is forecast to decline by ~100 bp compared to last year."
"SVU is trying to change its go-to-market strategy by improving both prices and the shopping experience, but this has not translated to improved performance given the difficult, highly competitive environment and cost inflation pressures...Despite these challenges, we think cash flow remains solid, and we expect the company to continue to pay down debt. Nonetheless, we think the stock is fully valued right now."
For more ratings news on SUPERVALU click here and for the rating history of SUPERVALU click here.
Shares of SUPERVALU closed at $9.42 yesterday.
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