Supervalu shares seen rising - Barron's

NEW YORK, May 11 (Reuters) - Shares of Supervalu Inc (SVU.N: Quote, Profile, Research), the third-largest U.S. supermarket chain, could post gains in coming months as the company executes a plan to cut debt and renovate stores, investors said in an article in the May 12 issue of Barron's financial magazine.

Shares of Supervalu, which owns Albertsons, Shaw's, Jewel-Osco and other store brands, could rise to $40 as the company executes on its growth plan, Cliff Hoover, co-chief investment officer at Dreman Value Management, was quoted as saying. The shares closed Friday at $32.82 on the New York Stock Exchange.

Richard Arvedlund, portfolio manager at Cypress Capital Management, recently raised his stake in Supervalu, saying the stock would be more fairly valued at $41, according to the article.

Even though the economy is slowing, with unemployment, gas and food prices rising, "eating is still a necessity," the article said. Supervalu is offering an extra $30 to customers who redeem their government stimulus checks for $300 in gift cards at the store, it said. (Reporting by Dane Hamilton; editing by John Wallace) (Reuters email: dane.hamilton@thomsonreuters.com. 646 223 6000))