Safeway’s Estimates, Target Cut at UBS (SWY)

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Supermarket operator Safeway Inc. ( SWY ) saw its earnings estimates and price target lowered on Tuesday by analysts at UBS.

The firm cut its estimates for SWY through 2011, noting the company will probably face higher margins pressure due to price competition. UBS maintained its "Neutral" rating on the stock, but lowered its price target to $21.

Safeway shares, which closed at $19.60 on Friday, fell 7 cents, or -0.4%, in premarket trading Tuesday.


The Bottom Line
We have avoided shares of SWY since our early June 2008 coverage began, when the stock was trading at $31.04. The company has a 2.45% dividend yield, based on Friday's closing stock price of $19.60. The stock has technical support in the $17-$18 price area. If the shares can firm up, we see overhead resistance around the $22 price level. We would remain on the sidelines for now.

Safeway Inc. ( SWY ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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 The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: SWY

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