BMO Capital Upgrades Kroger (KR) to Outperform

BMO Capital upgraded Kroger (NYSE: KR) from Market Perform to Outperform with a price target of $58.00 citing increased confidence in Kroger’s ability to modestly grow operating margins over the next few years.

Analyst Kelly Bania cited: 1) we believe that the competitive threat from Walmart is less of an issue for Kroger than in the past several years; 2) we believe Kroger could continue to benefit from an accelerating product mix shift benefit that is favorable to gross margins; and3) we believe Kroger could continue to benefit from a “less cautious” consumer (compared with an intense focus on price in recent years)as the economic backdrop continues to improve.

Importantly, the firm believes the competitive threat from Walmart has diminished.

For an analyst ratings summary and ratings history on Kroger click here. For more ratings news on Kroger click here.

Shares of Kroger closed at $49.26 yesterday.

You May Also Be Interested In

• QuantumScape (QS) PT Lowered to $6 at Truist Securities
• Shopify (SHOP) stock rating raised at Morgan Stanley
• Alpine Income Property Trust (PINE) PT Lowered to $18 at Jones Trading