Safeway Cut to “Neutral” at Credit Suisse; Pension Costs Looming (SWY)

By Staff,

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Supermarket and pharmacy operator Safeway Inc. ( SWY ) on Monday caught a big downgrade from analysts at Credit Suisse.

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 downgrade.

Safeway shares, which are mostly flat year-to-date, posted small losses in premarket trading Monday.

The Bottom Line
Shares of Safeway ( SWY ) 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. ( SWY ) is not recommended at this time, holding a 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 .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: SWY

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