Skip to main content

Market Overview

Kroger Investors Have An Appetite For Consolidation After Weak Q2

Kroger Investors Have An Appetite For Consolidation After Weak Q2

The food industry is facing a deflationary environment, weighing on supermarket chain Kroger Co (NYSE: KR)'s stock price over the past three months. Shares have fallen nearly 14 percent over the past 90 days.


According to recent CPI Food-at-Home data, grocery-level deflation continued to worsen in September. With Kroger's investor conference set for next week, analysts at Deutsche Bank are hoping to get an update on industry conditions. Grocery prices have fallen for 10 months in a row.

"Persistent deflation has led grocers to cut prices and offer aggressive promotions to drive traffic, and, as a result, sales and margins across the industry have declined," wrote Deutsche Bank.

Consolidation Coming?

The current challenging environment in the industry could set the stage for more consolidation, according to Deutsche Bank.

"KR is very well positioned to capitalize on M&A opportunities, as its B/S remains strong, giving KR plenty of flexibility," added the analysts.

Deutsche Bank maintains a Buy rating on Kroger with a $39.00 price target.

Latest Ratings for KR

May 2021Goldman SachsDowngradesNeutralSell
Mar 2021Morgan StanleyMaintainsUnderweight
Jan 2021Telsey Advisory GroupDowngradesOutperformMarket Perform

View More Analyst Ratings for KR
View the Latest Analyst Ratings


Related Articles (KR)

View Comments and Join the Discussion!

Posted-In: CPI Deutsche BankAnalyst Color Price Target Commodities Reiteration Markets Analyst Ratings Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at