NEW YORK (TheStreet) -- Shares of SUPERVALU (SVU) are sinking, down 3.92% to $8.82 in early market trading Tuesday, after the wholesale grocery chain had its rating lowered to "perform" from "outperform" by analysts at Oppenheimer.
The firm removed its price target of $10, citing a less attractive risk/reward following the recent outperformance of shares.
Oppenheimer analysts also believe the company's earnings upside will be more muted from now on.
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SUPERVALU is a wholesale distributor to independent retail customers, operating in three reportable segments which include independent business, save-a-lot, and retail food.
Separately, TheStreet Ratings team rates SUPERVALU INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SUPERVALU INC (SVU) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins."