Safeway Upgraded & Told to Shrink and 2 More Heavily Traded Stocks to Follow
Safeway Inc. (NYSE:SWY): Current price $28.14
Safeway shares were upgraded from Underperform to Outperform at Credit Suisse, but the latter observed that the iconic grocery chain might accomplish more with less if it would reduce its presence in certain markets, perhaps including Southern California, in which Whole Foods is dominant with the foodie and health-conscious groups. The new Chief Executive Robert Edwards is thinking of ways to boost the value of shares, one of which might include selling assets in weaker markets with analysts saying that the divestiture of stores in the Southern California market could bring a significant upside. In the meantime, Safeway’s price target was raised from $26 to $34.