Kroger downgraded to Market Perform from Outperform at BMO Capital

BMO Capital analyst Kelly Bania downgraded Kroger (KR) to Market Perform from Outperform with an unchanged price target of $60. The company remains on track to reiterate earnings targets for fiscal 2025 but valuation expansion beyond current levels would likely require stronger grocery market share trends and/or upward earnings revisions, the analyst tells investors in a research note. The firm says that while the pending Albertsons (ACI) merger still lacks clarity, it estimates the potential accretion from a deal or no-deal scenario is now largely reflected in Kroger shares.