Zacks Investment Research downgraded shares of Nash Finch Company (NAFC) from NEUTRAL to UNDERPERFORM on December 11, 2012, with a target price of $19.00.
We are downgrading our recommendation on Nash Finch to Underperform from Neutral anticipating weak performance of the company due to slowdown in the U.S. economy and declining consumer spending. Though the company posted better-than-expected earnings in the third quarter, it has been performing below expectations over the past few quarters. Nash Finch's total comparable sales dipped 1.4% year over year due to regular closing and sale of stores. SG&A expenses increased while EBITDA declined in the quarter. The company's military segment is suffering the most due to extensive peer pressure. Moreover, lack of international exposure makes the company vulnerable to the fluctuations of the U.S. economy.
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