Standpoint Research Upgrades Safeway From Hold To Buy (SWY)

Standpoint Research has upgraded shares of Safeway SWY from Hold to Buy today with a 2011-2012 price target of $24-$26. The firm had previously downgraded the shares from Buy to Hold on March 12. Since that time, SWY has fallen 18% and underperformed the S&P by 1500 basis points. According to Standpoint, the stock is now trading at 1996 price levels and near an all time low at 0.2x revenues. Standpoint analyst Ronnie Moas wrote "the bad news is already factored in...what is not factored in is an upside surprise/bounce off all-time low net profit margins of 1.6%...We see $3 of upside here for every $1 downside risk on a two-year hold." During the current trading session, SWY shares have gained 1.19% to $20.49. Volume has been relatively heavy in the name.