Safeway stock undervalued, ripe for rise -Barron’s

NEW YORK, July 18 (BestGrowthStock) – Supermarket chain Safeway Inc
(SWY.N: ) appears to be a cheap stock as the economy in its main
market of California shows glimmers of recovery and a store
remodeling lures upscale shoppers, Barron’s reported on Sunday,
also citing a strengthening balance sheet.

The business and financial weekly said in its July 19
edition that even if Safeway shares, which have plunged nearly
25 percent to about $20 in the last three months, take another
hit on second quarter results this week, the stock was a buying
opportunity.

“Safeway is chronically undervalued,” Barron’s quoted
Deutsche Bank (DBKGn.DE: ) analyst Shane Higgins. “This is a
company that is being valued on past rather than future
performance, and that’s a mistake.

“It has all the elements of a stock and a company that will
do very well at this point in the cycle,” he said.

Barron’s said the stock could “easily” climb 50 percent.
Safeway shares closed down 1.88 percent at $19.83 on Friday.

Safeway stock undervalued, ripe for rise -Barron’s