Kroger (NYSE:KR) is taking it on the chin after yesterday's sharp cut in guidance due in part to a commitment to win on pricing.
Guggenheim scratches the grocery store stock off its Best Ideas list.
Goldman Sachs moves to a Neutral rating after having Kroger set at Buy. The new price target is $26.
Also moving quickly out of the bull camp, Telsey lowers Kroger to Market Perform and JPMorgan cuts to Neutral. "Unless inflation can start to increase by perhaps 2% or more, the current environment, along with the headwind of wage inflation, likely will eclipse many of inflation's benefits," warns JP.
Not every firm on Wall Street is bailing on Kroger. Oppenheimer still has a positive view for the long term. "Near term the headwinds persist, but we think longer term, these price investments will lead to market share gains," says analyst Rupesh Parikh. "So I think if you're a longer term shareholder, I would buy the weakness today," he adds.
Sources: Bloomberg and CNBC.
Previously: Kroger sinks after guidance cut, Wal-Mart to blame? (June 15)
Shares of Kroger are down 1.47% premarket to follow on yesterday's 19% freefall.
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