Standpoint Research Downgrades SAFEWAY (SWY) to Hold; Stock Has Run Its Course Vs. Benchmark

Standpoint Research downgraded SAFEWAY (NYSE: SWY) from Buy to Hold with a price target of $22.00.

Standpoint analyst, Ronnie Moas, said, "The shares are now striking distance from the 2012 price target of $22 that we set on August 8...This is a stock we have now gone in-and-out of three times in the last two years. This is a company with no revenue growth, and fairly valued at 11X what they may earn in 2012-2013. We noticed (once again) an oversold condition here on an absolute and relative (to the S&P) basis back in August and we got what we were looking for with the recent rebound. SWY is a low beta name at 0.7X and it is difficult to capture gains in this name of more than 20% and 1000 bps versus the S&P (as we do with higher beta names)."

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 $20.59 yesterday.

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