Market Overview

UPDATE: Goldman Sachs Downgrades Kroger on Continued Downside

Share:
Related KR
Wall Street's M&A Chatter From August 11-13: Altice, Costco-Kroger, United Technologies-Rockwell Collins
Benzinga's Top Upgrades, Downgrades For August 11, 2017
Hahn Capital Management Llc Buys East West Bancorp Inc, Sells The Kroger Co, CIT Group Inc (GuruFocus)

In a report published Friday, Goldman Sachs analyst Stephen Grambling downgraded the rating on Kroger (NYSE: KR) from Neutral to Sell, but raised the price target from $32.00 to $35.00.

In the report, Goldman Sachs noted, “We are downgrading The Kroger Co. (KR) to Sell from Neutral with 7% downside to our new $35, 12-month price target vs. 1% average upside for our coverage. We see unfavorable risk/reward as the shares now trade at a premium valuation relative to their history (13X NTM P/E vs. 5-yr average of 11.4X), industry tailwinds are fading, and our analysis suggests the market may already be pricing in upside to management's HTSI accretion guidance. We believe core EBITDA growth (excluding any acquisitions or synergies) will moderate amidst a soft industry backdrop, making the elevated valuation tough to sustain.”

Kroger closed on Thursday at $37.79.

Latest Ratings for KR

DateFirmActionFromTo
Aug 2017Stephens & Co.Initiates Coverage OnUnderweight
Jun 2017Morgan StanleyDowngradesOverweightEqual-Weight
Jun 2017JP MorganDowngradesOverweightNeutral

View More Analyst Ratings for KR
View the Latest Analyst Ratings

Posted-In: Goldman Sachs Stephen GramblingAnalyst Color Downgrades Analyst Ratings

 

Related Articles (KR)

View Comments and Join the Discussion!