Cantor Fitzgerald Starts SAFEWAY (SWY) at Sell; Expect Comparisons Will Be Especially Unfavorable in FY:12
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Price: $35.10 --0%
Rating Summary:
4 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
4 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Cantor Fitzgerald initiates coverage on SAFEWAY (NYSE: SWY) with a Sell. PT $16.00.
Cantor analyst said, "Safeway's earnings base from the 2010-11 timeframe remains inflated from a variety of volatile income streams. This is likely to set the foundation for further earnings disappointment heading into FY:12. We are introducing below-consensus EPS estimates of $1.38 and $1.40 for FY:11 and FY:12, respectively. We believe there is as much as $0.50 per share of earnings risk in FY:12 relative to Street expectations. Based on incremental competitive threats (particularly in relation to Safeway's Northern and Southern CA divisions) and continued inflationary pressures, we expect that Safeway will continue to cede share in many of its most profitable markets on the back of declining volume trends."
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 $20.64 yesterday.
Cantor analyst said, "Safeway's earnings base from the 2010-11 timeframe remains inflated from a variety of volatile income streams. This is likely to set the foundation for further earnings disappointment heading into FY:12. We are introducing below-consensus EPS estimates of $1.38 and $1.40 for FY:11 and FY:12, respectively. We believe there is as much as $0.50 per share of earnings risk in FY:12 relative to Street expectations. Based on incremental competitive threats (particularly in relation to Safeway's Northern and Southern CA divisions) and continued inflationary pressures, we expect that Safeway will continue to cede share in many of its most profitable markets on the back of declining volume trends."
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 $20.64 yesterday.
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