UPDATE: Goldman Sachs Upgrades Kroger Company to Neutral on M&A Potential
Goldman Sachs upgraded Kroger Company (NYSE: KR) from Sell to Neutral and raised the price target from $24.00 to $27.00.
Goldman Sachs said, "We are upgrading KR to Neutral from Sell based on (1) upward estimate revisions on improving second derivative industry growth that leave us more in line with consensus; (2) M&A is moving to the forefront, with KR positioned as a consolidator; and (3) a 10% total distribution yield makes KR the best social contract in our coverage. Since adding KR to the Sell List on 7/24/11, the stock is +11% vs. the S&P +13%. Note that the stock has outperformed sharply over the past several months as M&A conjecture has heated up (KR up 27% vs. S&P 500 up 8% since 9/1/12)."
Kroger Company closed at $28.20 on Friday.
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