• Feb. 12, 2016, 9:26 AM
    • Stifel Nicolaus sets its sights on the grocery store sector after yesterday's dramatic report of Kroger's (NYSE:KR) interest in a buyout of The Fresh Market (NASDAQ:TFM).
    • The investment firm gives Kroger a Buy rating and $45 price target after digesting the consolidation potential. Kroger's M&A spree over the last few years already includes Roundy's, Vitacost, and Harris Teeter - although management has been credited with successful integration strategies.
    • Investors have been rewarded from Kroger's growth push with shares of the grocery store chain outperforming the S&P 500 Index by a wide margin (+215% vs. +36% over 5 years).
    • Sprouts Farmers Market (NASDAQ:SFM) is also given a Buy rating from Stifel and assigned a PT of $27.
    • Previously: The Fresh Market closes +22% on buyout spike, more room to run? (Feb. 11 2016)
    • SFM +2.1% premarket to $22.55 vs. a 52-week range of $16.41 to $38.45.
    • TFM +1.81% premarket to $23.09 vs. a 52-week range of $17.81 to $42.09.
    • WFM +1.90% premarket to $29.48 vs. a 52-week range of $28.07 to $57.57.
    • KR +1.95% premarket to $37.14 vs. a 52-week range of $27.32 to $42.75.
    Feb. 12, 2016, 9:26 AM | 1 Comment
  • May 14, 2015, 9:47 PM
    • Consolidation in the grocery industry could pick up even more, observes Supermarket News.
    • A large merger between Albertsons and Safeway (NYSE:SWY) has been followed by talks between Delhaize (NYSE:DEG) and Ahold (OTCQX:AHONY).
    • The increased push by Wal-Mart and Target in the sector has added pressure to leverage store growth through M&A.
    • "There is mounting pressure in the supermarket industry to consolidate operations to drive better purchasing power and leverage distribution and technology platforms," notes Wolfe Research.
    • Kroger (NYSE:KR) is seen as a likely candidate to look for a chain to acquire.
    • Previously: Ahold, Delhaize confirm merger talks (May 12)
    • Grocery stocks: RNDY, SVU, VLGEA, WFM, CASY, IMKTA, OTCPK:PUSH, TFM, SFM, WMK.
    May 14, 2015, 9:47 PM | 8 Comments