Why This Kroger Analyst Is Turning Bullish
Portfolio Pulse from Priya Nigam
Kroger Co (NYSE:KR) shares rose after BMO Capital Markets upgraded the stock from Market Perform to Outperform and raised the price target from $58 to $60. Analyst Kelly Bania cited Kroger's strong industry positioning and potential benefits from its pending deal with Albertsons Companies Inc (NYSE:ACI). Bania expects Kroger to beat earnings expectations and reach the high-end of its fiscal 2025 guidance.
June 18, 2024 | 4:12 pm
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POSITIVE IMPACT
BMO Capital Markets upgraded Kroger from Market Perform to Outperform, raising the price target to $60. Analyst Kelly Bania cited strong industry positioning and potential benefits from the pending Albertsons deal. Earnings are expected to beat consensus.
The upgrade from Market Perform to Outperform and the raised price target indicate strong confidence in Kroger's future performance. The analyst's expectation of earnings beating consensus further supports a positive short-term impact on the stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Kroger's pending deal to acquire Albertsons Companies Inc (ACI) is seen as beneficial under either a deal or no-deal scenario. However, a no-deal scenario seems likely, which could be the best path forward.
The potential acquisition by Kroger is a significant event for Albertsons. However, the likelihood of a no-deal scenario introduces uncertainty, making the short-term impact on ACI's stock price neutral.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50