Kroger price target raised to $75 from $70 at BofA

BofA raised the firm’s price target on Kroger (KR) to $75 from $70 and keeps a Buy rating on the shares. While the firm believes a merger with Albertsons (ACI) would have supported stronger buying power, digital advertising capabilities and other scale efficiencies, it continues to view Kroger as well positioned in grocery and sees long-term margin support from growth in alternative profit streams, improving digital profitability and continued execution on cost savings initiatives, the analyst tells investors.