From Yahoo Finance: 2025-04-01 16:02:00

Melius Research advised selling Kroger stock due to concerns over its business fundamentals, market share loss to Walmart, and leadership vacancies. Half of analysts recommended buying Kroger shares, while half suggested holding them. Melius set a price target of $58, 17% below Tuesday’s close. Former CEO resigned last month.

Melius described Kroger as a deteriorating business facing customer loss to Walmart, potential lawsuit liability from Albertsons, and leadership vacancies. Despite investors’ belief in Kroger’s safety due to lack of tariff exposure, Melius warned it does not make Kroger safe. Executives mentioned less exposure to international tariffs.

Kroger shares rose almost 20% in the past six months, with some traders viewing it as a safe investment due to being relatively insulated from tariffs. Investors were interested when Kroger and Albertsons scrapped merger plans after a judge blocked the deal. Kroger shares ended Tuesday at about $68.12, slightly above the consensus price target of $67.67.

Read more: Analyst Calls Kroger’s ‘Deteriorating Business’ the Reason To Sell