Safeway Slashed to “Underperform” at Credit Suisse; Expecting Downside in Coming Quarters (SWY)

Supermarket chain operator Safeway Inc. (SWY) on Tuesday received a big downgrade from analysts at Credit Suisse.

The The firm cut its rating on SWY from “Neutral” to “Underperform” with a $15 price target. That target suggests a 7% downside to the stock’s Monday closing price of $16.10.

Credit Suisse noted it expects the company to lag its peers in the supermarket/pharmacy space over the next several quarters.

Safeway shares posted small losses in premarket trading Tuesday.

The Bottom Line
Shares of Safeway (SWY) have a 4.35% dividend yield, based on last night’s closing stock price of $16.10. The stock has technical support in the $15 price area. If the shares can firm up, we see overhead resistance around the $18 price level.

Safeway Inc. (SWY) is not recommended at this time, holding a DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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