UPDATE: Citi Downgrades Kroger (KR) to Sell

(Updated - January 28, 2022 6:18 AM EST)

Citi analyst Paul Lejeuz downgraded Kroger (NYSE: KR) from Neutral to Sell with a price target of $42.00 (from $47.00).

The analyst comments "We are downgrading KR from Neutral to Sell. As 1 of only 4 stocks up YTD (out of 46 in our universe), KR has been viewed as a defensive name within retail. However, we don’t believe this reflects the risks KR faces in F22 and beyond. These risks include the normalization of food at home vs away from home as the US economy reopens, inflationary pressures that may not be easy to pass along to the consumer, and a difficult-to-anniversary benefit from vaccines that drove traffic, sales and margins in 2021. We are reducing our F22 from $3.51 to $3.32 to reflect more conservative sales/margin assumptions. We are reducing our TP from $47 to $42."

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 $45.40 yesterday.

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