Wells Fargo downgraded Kroger (KR) to “Equal Weight” from “Overweight” and lowered its price target to $68 from $70 due to concerns over increased spending and muted core growth in a competitive grocery market. The firm also cited near-term earnings risk for Kroger, despite the appointment of new CEO Greg Foran, who brings strong operational experience from Walmart. Kroger is currently facing challenges including slower consumer spending and increasing competition.
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Wells Fargo Turns Neutral on Kroger (KR), Flags Spending and Growth Concerns
Wells Fargo downgraded Kroger (KR) to “Equal Weight” from “Overweight” and lowered its price target to $68 from $70 due to concerns over increased spending and muted core growth in a competitive grocery market. The firm also cited near-term earnings risk for Kroger, despite the appointment of new CEO Greg Foran, who brings strong operational experience from Walmart. Kroger is currently facing challenges including slower consumer spending and increasing competition.