UPDATE: Goldman Sachs Lowers PT to $21 on Kroger

A report from Goldman Sachs reiterates its Sell rating and lowers its price target from $21.50 to $21 on Kroger (NYSE: KR).

The report states, “While bulls are likely to point to KR's consistency in the face of rising inflation, we highlight several areas of concern that offer a cautious warning sign for investors: (1) KR was one of the only major public food retailers to see ID sales growth moderate from 2Q to 3Q and their comp decoupled from economic indicators (payrolls); (2) improving penny profits per item in 3Q could be as good as it gets given the benign competitive environment…”

KR closed yesterday at $23.37. Colleen Chavis