UPDATE: Credit Suisse Upgrades Safeway to Outperform

Credit Suisse raises its rating on Safeway

to Outperform from Neutral and raises its estimates by $7 to $26 on attractive risk/reward to shares. Credit Suisse says, "While the company's fundamentals have been challenged, its issues are well understood and we see the potential for multiple positive data points in the near-term that could drive the stock higher. We believe Q4 sales improved against the backdrop of soft industry growth, as we continue to see evidence of strengthening West Coast trends. The market also appears to under appreciate accretion from a sharp acceleration in share repurchase activity. Lastly, the upcoming analyst meeting is much more likely to be a positive event for the stock than negative, in our view." SWY closed at $21.87 a share yesterday.