Jefferies Lowers SVU Target To $8 From $12; Maintains Hold Rating

SuperValu Inc.'s SVU weaker-than-expected 3Q performance suggests the road ahead remains quite difficult, Jefferies reports. “With the likelihood for more limited success with its price investments, we believe it may be time for management to consider more creative or aggressive actions with both capital structure and assets that may better preserve/enhance shareholder equity,” Jefferies writes. “We maintain our Hold rating, but lower our price target to $8/share (from $12) and lower our 4Q, FY11 and FY12 estimates. We also adjust our 4Q, FY11 and FY12 EPS estimates to $0.36, $1.31 and $1.26 from $0.53, $1.58 and $1.75, respectively.” SuperValu Inc. closed Wednesday at $7.71.