Morgan Stanley Provides Color on Supervalu

Morgan Stanley provided color on Supervalu SVU. In a research report published today, the rating agency states, “We believe the share price will fall in absolute terms over the next 15 days. This is because of an earnings release. Safeway (SWY) reported inflation-related volume declines and gross margin drag in its 2Q on 7/21. We believe that Supervalu (SVU) will also disappoint when it releases its F1Q12 EPS next Tuesday, 7/26 as its underlying fundamentals are worse than SWY and they compete in many of the same markets… We estimate that there is about a 60% to 70% or "likely" probability for the scenario.” At the moment, Morgan Stanley has an Underweight rating placed on the company's stock. On Thursday, SVU added 2.06% to its value to end the day at $9.43.