Jefferies Raises PT On SVU To $9.50

Jefferies has raised its price target on Supervalu Inc. SVU from $8 to $9.50 despite concern in the company's sales trends. In the report, Jefferies states, “Management continues to do a good job of reducing costs, but underlying sales and traffic trends remain very, very troubling. Indeed, while EBITDA in 4Q was “strong” it appeared to come at a fairly big price – further market share erosion. While we know the team is working hard, it does seem short-term profits/debt pay-down took priority despite a multi-year decline in many of its operating units.” Jefferies maintains a Hold rating on the stock. SVU closed at $10.67 yesterday.