Spartan Stock Up Following Analyst Upgrade

PORTLAND, Ore. (AP) — Shares of regional grocer Spartan Stores Inc. jumped in trading Tuesday following an upgrade by a Jeffries & Co. analyst.

Spartan Stores, which owns and operates stores primarily in Michigan, has seen its traffic and market share grow while the state is mired in one of its most difficult economic times, Jeffries & Co. analyst Bakley Smith said in a research note Tuesday.

Michigan has led the country in unemployment for some time as it watches the automotive industry crumble and its housing market has suffered.

Smith said the local economy may have bottomed out, and Spartan could build sales and profit as the economic picture improves. He upgraded his rating of Spartan shares to "buy" from "hold."

However, he lowered his target price on Spartan shares to $18 from $24 to reflect lower estimates based on the weakness of the current market.

Shares of Spartan Stores rose $1.16, or more than 8 percent, to 15.18 by midday trading Tuesday.