Will This Price Increase Help Safeway (SWY) Today?

Tickers in this article: SWY
Story updates at 10 a.m. to reflect market activity.

NEW YORK (TheStreet) -- Jefferies increased its price target for Safeway to $40 Friday, maintaining its "hold" rating.

Shares of Safeway fell 3% to $38.28 in morning trading.

The new price target is just above Safeway's Thursday closing price of $39.47. The increase follows an announcement that the grocery store operator has reached an agreement to be acquired by a private equity consortium led by Cerberus.

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STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.