Kroger Gets Buy Rating (KR)

Shane Higgins and Bill Dreher Jr, analysts at Deutsche Bank, have given a Buy rating to Kroger (NYSE: KR), the retailer which also manufactures and processes food products.

The stock has been trading around $20.75 and the target price is $28.00.

Kroger continues to increase its market share in the competitive market and reported better than expected sales in the first quarter while maintaining margins. The sales trend in the second quarter is also positive.

The downward risks include increasing competition from discounters and clubs in the grocery segment, grocery deflation, weak demand and pension liabilities.