Morgan Stanley Maintains Equal-Weight on Kroger

Morgan Stanley is out with its report today on Kroger (NYSE: KR), maintaining Equal-weight.

In its report, Morgan Stanley writes, "Against a backdrop of a contracting grocery industry being buffeted by high food inflation, Kroger continues to gain share. We expect the heavier margin sacrifice from 2Q to carry into the next few quarters and we believe 2012 estimates remain too high, thus we maintain our Equal-weight rating."

Shares of KR closed Tuesday at $22.49, down 2.98% from Monday's close.