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Wall Street Analysts Are Bullish on Supervalu

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Wall Street’s view on Supervalu

Supervalu is covered by ten Wall Street analysts. They rate the company as a 2.5 on a scale of 1 (strong buy) to 5 (sell). It received 70% “hold” recommendations, 30% “buy” recommendations, and no “sell” recommendations.

Telsey Advisory Group and Deutsche Bank are among the brokers who gave the stock “hold” recommendations. Pivotal Research and RBC Capital gave “buy” recommendations.

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How are its peers rated?

Kroger (KR) and Whole Foods Market (WFM) are rated lower than Supervalu. While Kroger got a 2.9, Whole Foods earned a 3.0. Both of the companies have 8% “sell” recommendations. However, Kroger has twice as many “buy” recommendations compared to Whole Foods (36% versus 17%).

Among wholesalers, Sysco (SYY) has a 2.5 rating, while United Natural Foods (UNFI) has a 2.9 rating.

Supervalu stock is expected to rise 65% over the next year

Wall Street analysts are bullish on Supervalu. Analysts expect its stock price to rise 65%. The company, which is currently trading at $3.17 (as of June 28, 2017), has been assigned a target price of $5.22. Individual target prices on the company range between $3.50 and $8.00.

Supervalu has the best upside in its broader peer group. Kroger and Sprouts Farmers Market’s (SFM) share prices are expected to rise 14% and 12%, respectively. Walmart (WMT) and Costco’s (COST) share prices are projected to rise 5% and 14%, respectively. Sysco and United Natural Foods should see their share prices rise 12% and 15% during the next 12 months.

ETF investors seeking to add exposure to Supervalu can consider the SPDR S&P Retail ETF (XRT), which invests 0.9% of its portfolio in the company.

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