As the buy-side markets tighten due to the ever-shifting nature of the industry, Kroger may have just inched up in the competition. Analyst and Vice President at Goldman Sachs, Stephen Tanal, recently released a report where he upgraded the retailer’s stock to Buy from Neutral.
This upgrade came from Tanal’s report covering food retailers with a Neutral grading. Tanal stated, according to Benzinga.com, that Kroger showed long-term promise given its “entrenched, multi-local dominant positioning, driving local economies of scale across the U.S.”
Tanal stated that as Kroger has no international footprint, the company’s structures should remain unaffected by global shifts and uncertainties. As Tanal stated, Kroger has already shown recent success by taking shares from its competitors.
In addition to upgrading the company’s rating, Tanal added Kroger stock to the Conviction List, with an assigned stock target price of $42, which represents a projected growth of 17 percent.
Kroger was named in the report for primarily serving “low population density areas that are better insulated from competitive intrusion,” wrote Tanal.
This upgrade is not the first for Kroger in recent months, as TheStreet reported that analysts at Hilliard Lyons also upgraded Kroger stock to Buy just last month.
Could this signify that Kroger is making sizable moves ahead of its competition in the tight domestic markets?
Deli Market News will have the latest as Kroger and other retailers sharpen their strategies.