Morgan Stanley On SVU 4Q And F2012 Guidance

Morgan Stanley has issued a report regarding the 4Q results and F2012 guidance for SUPERVALU SVU. According to the report, “Supervalu reported a better than expected 4Q as the company reined in ineffective promotions from 3Q, driving a better gross margin. As valuation has been depressed and sentiment very bearish, we believe short covering drove the 17% move in the stock today. With traffic running -4.6%, we do not believe Supervalu has turned the corner and we see risk in the company's F2012 guidance which assumes both comp recovery and flat gross margins.” SVU has an Underweight Rating and a $7.25 Price Target. SVU closed at $10.61 a share yesterday.