RBC Capital Cuts Price Target on SUPERVALU (SVU) to $6; Reiterates Sector Perform

RBC Capital reiterated a Sector Perform rating on SUPERVALU (NYSE: SVU), and cut the price target to $6.00 (from $7.00), after the company adjusts outlook. SUPERVALU lowered its FY17 adjusted EBITDA outlook and 2Q identical store sales guidance for SaveA-Lot and its Retail segment. SVU now expects 2Q ID sales at Save-A-Lot and Retail to be lower than 1Q, and FY17 EBITDA to be -5% y/y (from -1.5%).

Analyst William Kirk commented, "After SVU's release and industry presentation, we are lowering numbers. While the wholesale side of the business has shown nice resiliency, the retail portions (including Save-A-Lot) are under intense macro and competitive pressure. If it were just macro pressure, we would be more constructive, but Save-A-Lot overlaps with many of the bestresourced price competitors in (and entering) the market. Reiterating Sector Perform and lowering price target to $6 from $7."

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 $4.95 yesterday.

You May Also Be Interested In

• Incyte (INCY) PT Raised to $105 at Truist Securities
• Progyny (PGNY) PT Raised to $33 at Truist Securities
• Macy's (M) PT Raised to $25 at TD Cowen