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.
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%).
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.