Supermarket and pharmacy operator Safeway Inc. (
) on Monday caught a big downgrade from analysts at Credit
The firm said it cut its rating on SWY from "Outperform" to
"Neutral" with a $20 price target, suggesting a 5% downside to the
stock's Friday closing price of $21.13. Credit Suisse noted the
company is facing a steeper pension liability, hence the
Safeway shares, which are mostly flat year-to-date, posted small
losses in premarket trading Monday.
The Bottom Line
Shares of Safeway (
) have a 2.74% dividend yield, based on Friday's closing stock
price of $21.13. The stock has technical support in the $18-$19
price area. If the shares can firm up, we see overhead resistance
around the $23 price level.
Safeway Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.2 out of 5 stars.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here