Ahold downgraded by S&P

Analysts at JP Morgan stated that that the economic downturn in the US is expected to have a negative impact on Ahold’s US operations, and has downgraded the company from "overweight" to "neutral," while also reducing their estimates for the company. The target price has been reduced from €10 to €9.

The EPS estimates for 2008 and 2009 have been reduced from €0.68 to €0.67 and from €0.73 to €0.72, respectively. The replacement of Stop & Shop/Giant-Landover’s CEO, Jose Alvarez, is not perceived as a positive development by the analysts.

Note:
Overweight, underweight and neutral are terms that are part of a three-tiered rating system used by stock analysts to indicate a particular stock's attractiveness. If a stock is deemed "overweight" the analyst is saying, in his opinion, the stock is a better value relative to other stocks he covers in the same sector.

Related article:
The Netherlands: An overview of food retailing