Shares of Albertsons (NYSE:ACI) and Kroger (NYSE:KR) were little changed in today’s trading despite positive developments in a Colorado court regarding the state’s efforts to block their $25 billion merger. The optimism stemmed from a tentative agreement to divest additional stores to C&S Wholesale Grocers, potentially addressing the concerns of the Colorado attorney general. This divestiture plan may persuade Colorado to reconsider its stance against the merger.
This lawsuit is part of a broader challenge, including efforts by the Federal Trade Commission and several states, to prevent the merger over competition concerns. Despite these obstacles, Kroger has been actively seeking solutions to satisfy regulatory demands, including a notable agreement announced last September to sell 413 stores to C&S Wholesale Grocers for $1.9 billion, aiming for FTC approval of the deal.
What Is the Target Price for KR?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on KR stock based on six Buys, six Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After an 18% rally in its share price over the past year, the average KR price target of $58.50 per share implies 4.54% upside potential.
