Safeway Hopes Price Declines Begin To Fade

After a meeting at Safeway SWY headquarters, Morgan Stanley reports price declines weighing on same store sales should start to fade as the company laps last year's price corrections. Risk to 2H gross margins as the operating environment remains difficult and the company will need both a comp and gross margin improvement to reach guidance for 2H. While investors may remain nervous about the stock, Morgan Stanley has an Equalweight rating on SWY. Safeway closed yesterday at $19.09