Deutsche Bank Starts SUPERVALU (SVU) at Buy; Transformation Initiatives Appear to be Gaining Traction

Deutsche Bank initiates coverage on SUPERVALU (NYSE: SVU) with a Buy. PT $10.00.

Deutsche analyst says, "SVU has a credibility issue - no sell side "Buy" ratings/21% SI/down 21% YTD. While it will take both time/consistent execution to address, we're willing to recommend SVU, particularly with P/E supportive at 6.0x. In addition, we like that EPS guidance has been set realistically and that sales trends are improving (albeit modestly). Frankly, the stock reminds us of both Saks (NYSE: SKS) and Macy's (NYSE: M) back in '08/'09 when sentiment was just too negative relative to ongoing underlying changes. If progress continues, as we think it will, SVU could move higher."

For more ratings news on SUPERVALU click here and for the rating history of SUPERVALU click here.

Shares of SUPERVALU closed at $7.49 yesterday.

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