Cantor Fitzgerald Defends SUPERVALU (SVU); Disappointing Results, But There Are Some Positives
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Price: $32.49 --0%
Rating Summary:
1 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
1 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Cantor Fitzgerald maintains a 'Buy' on SUPERVALU (NYSE: SVU) price target of $6.00 (from $10.00).
Analyst, Ajay Jain, said, "More confirmation that competitive activity is heating up...Although we anticipated the timing of SVU's earnings release to follow its annual shareholders' meeting on 7/17, last night SVU reported 1Q:13 EPS of $0.19 (below our est. of $0.36 and the consensus figure of $0.38). The ID sales decline of 3.7% was weaker than our -2.5% estimate. Management has also suspended the dividend, withdrawn FY:13 guidance, and has announced a more aggressive price investment and cost reduction strategy."
"There are some positives - Faced with the current set of headline related challenges, we expect some near-term capitulation in the stock. However, with a new ABL facility and real estate backed term loan, SVU is no longer restricted by its existing debt covenants. The increased financial disclosure on Save-A-Lot also signals that the Board is increasingly disposed to unlock value." (Analyst also comfortable with FY13 FCF outlook)
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 $5.29 yesterday.
Analyst, Ajay Jain, said, "More confirmation that competitive activity is heating up...Although we anticipated the timing of SVU's earnings release to follow its annual shareholders' meeting on 7/17, last night SVU reported 1Q:13 EPS of $0.19 (below our est. of $0.36 and the consensus figure of $0.38). The ID sales decline of 3.7% was weaker than our -2.5% estimate. Management has also suspended the dividend, withdrawn FY:13 guidance, and has announced a more aggressive price investment and cost reduction strategy."
"There are some positives - Faced with the current set of headline related challenges, we expect some near-term capitulation in the stock. However, with a new ABL facility and real estate backed term loan, SVU is no longer restricted by its existing debt covenants. The increased financial disclosure on Save-A-Lot also signals that the Board is increasingly disposed to unlock value." (Analyst also comfortable with FY13 FCF outlook)
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 $5.29 yesterday.
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