Jefferies Raises PT On WINN To $8.50

Jefferies has raised its price target on Winn-Dixie Stores WINN from $7 to $8.50 following a strong gross margin last quarter. Says Jefferies, in the report, “WINN's strong gross margin led to much better than expected EBITDA, and we were pleased to hear that sales have now turned positive in 4Q11. WINN faces easy compares over the coming quarters, and the benefits from cycling the oil spill, slightly better macros and the fuelperks! program should all help sales. However, market share losses, the rising cost environment and lower than average productivity metrics keep us concerned.” Jefferies maintains a Hold rating on the stock. WINN closed at $8.04 yesterday.