Already a Bloomberg.com user?
Sign in with the same account.
Lehman upgrades grocer Great Atlantic & Pacific Tea (GAP
) to overweight from equal-weight.
Analyst Meredith Adler believes Great Atlantic & Pacific Tea will take important steps to enhance shareholders' value in the next 12 to 18 months.
She notes speculation in Canada that Great Atlantic & Pacific Tea considering divesting its Canadian operations. She believes the stock is unlikely to trade below standalone U.S. operations valuation if this speculation remains.
Adler thinks the sale of Canadian operations could garner about $850 million, leaving Great Atlantic & Pacific Tea with net cash position of $14 million. She notes other actions Great Atlantic & Pacific Tea could take including eliminating or monetizing non-core, money-losing units, and buying assets in core markets. She raises her $11 target to $18.