Jefferies Lowers Price Target On Safeway To $24

According to Jefferies, Safeway (NYSE:

) reported roughly in-line EPS in 2Q, however margin and sales trends remain muted as rising inflation offsets still sluggish volumes. Jefferies said that with inflation poised to accelerate in 2H and a still weak employment picture, there appears to be some increased risk to volumes and perhaps earnings in the back half, even with all the company's efforts to drive market share. “Our DCF of $34 suggests a long-term value proposition for Safeway.” Safeway closed yesterday at $21.47.