R5 Capital Downgrades Kroger (KR) to Sell, 'particularly vulnerable'

January 30, 2023 12:56 PM EST
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Price: $49.05 +1.09%

Rating Summary:
    13 Buy, 14 Hold, 8 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 9 | Down: 10 | New: 12
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(Updated - January 30, 2023 1:42 PM EST)

R5 Capital analyst Scott Mushkin downgraded Kroger (NYSE: KR) from Buy to Sell with a price target of $36.53 (from $54.00).

The analyst comments "We see Kroger as particularly vulnerable. Kroger, for its part, competes more than any supermarket against Walmart/other discounters, who are likely to gain share in a tumultuous environment. This is especially true in the case of Walmart, where better consumables execution and price leadership has been driving significant share gains. Kroger also is pressured by strong regional competition, such as Publix and HEB, that can have superior store standards. Given this backdrop, and despite our still favorable view of the acquisition, we recommend investors with a shorter time horizon (6-9 months) sell the equity, as there appears to be approximately 20% downside if our updated forecast materializes. We go over our rationale in greater detail in our R5 Reflections client letter."

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 $45.05 yesterday.

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