RBC Capital Upgrades Kroger (KR) to Outperform

RBC Capital upgraded Kroger (NYSE: KR) from Sector Perform to Outperform with a price target of $37.00.

Analyst William Kirk comments "Food Inflation on its Way: Back in October, when Food-at-Home CPI was -2.3%, we projected a return of inflation around May 2017. As of February, Food-at-Home CPI improved 60bps to -1.7% and both y/y and two-year trends accelerated (Jan/Feb). Given the recent strength in US Agricultural Exports (Jan +22.3% and 4Q'16 +14.3%), we believe excess supply is being unwound and still expect inflation by May/June (two-year acceleration continues). If the current Food-at-Home CPI two-year trend just holds (-2.1%), Sept would be inflationary. Kroger, which has lost 480bps to ID Sales due to deflation, will accelerate simply with macro improvement."

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 $28.96 yesterday.

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