Goldman Sachs Maintains Neutral Rating On Safeway And Updating Sum-Of-The-Parts Analysis (SWY)

In a recent report, Goldman Sachs has maintained a Neutral rating on Safeway SWY and updating the sum-of-the-parts analysis for the company to account for re-rating of Blackhawk, SWY's pre-paid gift card subsidiary. In the report, Goldman Sachs said, "Although our SOTP valuation has only modestly changed, the re-rating across the transaction processing space makes it more challenging for SWY to monetize Blackhawk through a transaction. While we have never viewed Blackhawk as a key driver of our view on SWY's shares, it has been a focus for some investors given the stock's premium valuation to its closest peer KR." The price target on SWY is currently $25.00. SWY closed on Friday at $24.25.