Tuesday, June 9, 2009

Analyst actions


Safeway (SWY) upgraded to buy at Jeffries this morning, and the price target of $26 is a third higher than where the stock closed yesterday. The analyst is impressed with SWY's ability to increase traffic at its stores, despite its higher-priced goods. He has a 2010 earnings estimate of $2.50, above the street consensus of $2.32. AlphaNinja - A good price for Safeway, especially as heavy capital expenditures on its remodels start to wind down. Potentially earning $1billion in 2010 free cash flow is an 11% Free Cash Flow Yield, very attractive.

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Keybanc sees Quiksilver (ZQK) shares as a long-term bargain, but are recoiling at the terms of the "liquidity" it secured last night. It allows the company to dither through 2010 without a cash crunch, but at a HUGE cost. Probably why shares are down 19%. This is more of a "looting" than a financing, if you ask me. But it keeps them solvent...


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