) is making all the right moves to drive customer loyalty through store remodels as well as strong private label and fuel rewards programs, all which should help grow sales and earnings as the economy improves. Jefferies said that at the same time, the distribution business should show strength in part due to higher levels of inflation. “Our price target of $16 represents ~11x our CY12 estimate, roughly in-line with 3-yr averages, but below our DCF of $20. Downside risks stem largely from further competitive pressures, deterioration in the Michigan macros and rising input costs.” Spartan Stores closed yesterday at $15.41.