Barclays Maintains an 'Overweight' on SUPERVALU (SVU); A Turnaround Will Take Time
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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 'Overweight' on SUPERVALU (NYSE: SVU) price target of $11.00.
Barclays analyst says, "SVU reported 2Q12 results that were in line with company expectations but higher than our forecast and consensus. Underlying trends, such as traffic and market share, remain weak, and the company also lowered the mid-point of its FY12 EPS guidance, suggesting that the outlook for 2H12 is more gloomy than previously expected. Management said this was due to its more cautious view of the consumer as the economic environment is proving to be more difficult than SVU had anticipated. This overshadowed commentary that SVU is now running more effective promotions, which are helping its profitability, and that it's improving its everyday prices and funding those investments with a variety of savings, and the stock traded down. We believe SVU's liquidity gives it the time it needs to continue to work on its turnaround, but we think this will take a long time."
"We are lowering our 3Q12 EPS to $0.25 from $0.29 and reducing our FY12 EPS to $1.28 from $1.29, while lowering our FY13 EPS to $1.35 from $1.39. SVU's FY12 EPS guidance range is $1.20-$1.30."
For more ratings news on SUPERVALU click here and for the rating history of SUPERVALU click here.
Shares of SUPERVALU closed at $7.71 yesterday.
Barclays analyst says, "SVU reported 2Q12 results that were in line with company expectations but higher than our forecast and consensus. Underlying trends, such as traffic and market share, remain weak, and the company also lowered the mid-point of its FY12 EPS guidance, suggesting that the outlook for 2H12 is more gloomy than previously expected. Management said this was due to its more cautious view of the consumer as the economic environment is proving to be more difficult than SVU had anticipated. This overshadowed commentary that SVU is now running more effective promotions, which are helping its profitability, and that it's improving its everyday prices and funding those investments with a variety of savings, and the stock traded down. We believe SVU's liquidity gives it the time it needs to continue to work on its turnaround, but we think this will take a long time."
"We are lowering our 3Q12 EPS to $0.25 from $0.29 and reducing our FY12 EPS to $1.28 from $1.29, while lowering our FY13 EPS to $1.35 from $1.39. SVU's FY12 EPS guidance range is $1.20-$1.30."
For more ratings news on SUPERVALU click here and for the rating history of SUPERVALU click here.
Shares of SUPERVALU closed at $7.71 yesterday.
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