Citi Maintains Hold on SUPERVALU (SVU)

Citi is out with its report today on SUPERVALU SVU, maintaining Hold. In a note to clients, Citi writes, "We assign Supervalu a 2S (Hold/Speculative) rating and a target price of $9. Supervalu has seen identical-store sales weaken, driven by customers exhibiting 'trading down' behavior, deflation, economizing, and high promotional activity. The company's high debt burden will also likely absorb most of Supervalu's free cash flows, which may impede the speed of execution and ultimately the full potential of its remodel initiative." Citi has a $59 PT on SVU. At the time of posting, shares of SVU were trading pre-market at $10.55, down 0.57% from Thursday's close.