Jefferies Trims Price Target on SAFEWAY (SWY) After Difficult Quarter

Jefferies raised estimates but lowered its price target on Hold-rated SAFEWAY (NYSE: SWY) from $25 to $24 after Q2 results.

The firm states, "Safeway reported roughly in-line EPS in 2Q, however margin and sales trends remain muted as rising inflation offsets still sluggish volumes. Indeed, with inflation poised to accelerate in 2H and a still weak employment picture, there appears to be some increased risk to volumes and perhaps earnings in the back half, even with all the company’s efforts to drive market share."

FY11 EPS goes rom $1.67 to $1.72, FY12 from $1.97 to $2.00.

For more ratings news on SAFEWAY click here and for the rating history of SAFEWAY click here.

Shares of SAFEWAY closed at $21.47 yesterday.

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