UPDATE: Bank of America Merrill Lynch Reiterates Underperform Rating, Raises PT on The Kroger Co.

In a report published Friday, Bank of America Merrill Lynch reiterated its Underperform rating on The Kroger Co. KR, and raised its price target from $20.00 to $23.00. BofA Merrill Lynch noted, “We remain cautious on KR, despite tonnage-driven industry-leading ID sales growth, given: 1) excess food-retailing capacity as discounters/dollar stores continue to enhance their grocery offerings, 2) continued competitive pressures on center-store pricing, and 3) a volatile agricultural commodity price environment that could translate into some near-term pressures.” The Kroger Co. closed on Thursday at $26.25.