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Supervalu downgraded on Food Stamp Cuts

 (Image source: supervalu careers)

The supermarket chain SUPERVALU INC. (NYSE:SVU) was downgraded by Goldman Sachs from neutral to sell as a result of recent cuts in the federal food stamp program by congress. A large percentage of Supervalu’ Save-A-Lot shoppers are food stamp recipients. In addition, the company is facing a lot competition from other supermarket chains. For the last three months, the stock has been down 8 percent. As a result, Goldman lowered the price target to $6 a share from $8. Goldman has been sour on the industry lately.