Discussing Wall Street’s take on Kroger

Kroger (KR) is covered by 26 Wall Street analysts, and the stock is rated 2.5 on a scale of 1 (strong buy) to 5 (strong sell). Its ratings have deteriorated over the past six months. The company had a 2.2 rating in May. A downgrade by Pivotal Research in June and by Deutsche Bank on October 9 are behind this rating decline.

Pivotal Research Group analyst Ajay Jain downgraded Kroger from a “buy” to a “hold” on June 25, citing high valuations. However, analysts resumed their recommendation stance on Kroger in September, despite the company failing to meet top-line expectations.

How Kroger’s Ratings Have Changed Recently

How are Kroger’s peers rated?

Kroger’s (KR) ratings are broadly in line with other food retailers. Organic and natural food retailer Sprouts Farmers Market (SFM) has a 2.4 rating, and retail giant Walmart (WMT) has a 2.3 rating.

Recommendations

About 54.0% of analysts covering Kroger (KR) suggest holding the stock, 38.0% recommend a “buy,” and 8.0% recommend a “sell.” In comparison, Walmart, Costco (COST), and SuperValu (SVU) don’t have any “sell” recommendations. About 5.0% of analysts suggest selling Sprouts Farmers Market (SFM) stock.

Citigroup, Jefferies, and Credit Suisse are among the brokers that gave “buy” recommendations on Kroger. Pivotal Research and Telsey Advisory Group have set “hold” ratings on the company. Deutsche Bank and Macquarie recommend selling Kroger stock.

In the next section, we’ll look at Kroger’s year-to-date stock movement.

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