Cantor Fitzgerald Reiterates a 'Sell' on SAFEWAY (SWY); No Inherent Value to BlackHawk...Except to Mgmt
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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 reiterates a 'Sell' on SAFEWAY (NYSE: SWY) price target of $14.00.
Analyst, Ajay Jain, said, "Safeway has announced plans to file an S-1 for a potential IPO for its gift card business, Blackhawk Network Holdings. The preliminary timing expectations are in 1H:13. This development strikes us as somewhat of a reversal following Safeway's recent investor conference in which management suggested that plans for a spinoff were not imminent."
"Based on Safeway's reported operating income of $1.1 billion in 2011 and Blackhawk's relatively small earnings contribution, it appears there is little incremental value that can be monetized through a spinoff. However, the potential for management to monetize their options in the Blackhawk subsidiary through an IPO could be very significant."
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 $15.82 yesterday.
Analyst, Ajay Jain, said, "Safeway has announced plans to file an S-1 for a potential IPO for its gift card business, Blackhawk Network Holdings. The preliminary timing expectations are in 1H:13. This development strikes us as somewhat of a reversal following Safeway's recent investor conference in which management suggested that plans for a spinoff were not imminent."
"Based on Safeway's reported operating income of $1.1 billion in 2011 and Blackhawk's relatively small earnings contribution, it appears there is little incremental value that can be monetized through a spinoff. However, the potential for management to monetize their options in the Blackhawk subsidiary through an IPO could be very significant."
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 $15.82 yesterday.
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