Citi Reiterates Safeway Sell (SWY)

Citi reiterated its Safeway SWY Sell rating in a research report.

In the report, Citi states, " SWY provided 2011 guidance of $1.60 to $1.80 (excluding the adjustments from the impact of a Canadian dividend). In addition to full year EPS guidance, the company also provided full year guidance for ID sales (+1.0 to 1.5%) and operating profit excluding fuel impact (flat to slightly positive). We view the ID sales guidance as conservative in light of more normalized price investments and the ability to pass along inflation. However, we remain cautious due to increased competition from alternative channels."

Shares of Safeway closed Thursday at $22.41, reflecting no change from Wednesday's market close.