Jefferies Lowers Price Target on SUPERVALU (SVU), Co. Should Look to Enhance Shareholder Equity

Jefferies is maintaining its Hold rating on shares of SUPERVALU (NYSE: SVU) and is lowering its price target from $9 to $8 following the release of the company's Q3 results.

The company's earnings for the quarter missed the firm's expectations at retail EBIT missed by $17.5 million. As a result of current market trends being slightly weaker than previously expected, the firm has reduced its Q4 and FY12 EPS estimates from $0.37 and $1.27 to $0.36 and $1.23. Jefferies also lowered its FY13 EPS estimate from $1.15 to $1.12.

An analyst at Jefferies comments, "While we believe SVU is focused on the right initiatives, the company’s Q3 underscores the difficult road still ahead. With market share and volume declines continuing, we believe it may be time for management to consider more creative or aggressive actions with both the capital structure and assets that may better preserve/enhance shareholder equity."

For an analyst ratings summary and ratings history on SUPERVALU click here. For more ratings news on SUPERVALU click here.

Shares of SUPERVALU closed at $7.34 yesterday.

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