Morgan Stanley raised the firm’s price target on Kroger (KR) to $62 from $58 and keeps an Equal Weight rating on the shares. While Kroger is “taking time to react” to yesterday’s judgements to block the planned Albertsons (ACI) deal and considering its options, management indicated in July investor meetings it would not likely appeal any rulings, which would mean the blocked deal stands and each company moves in separate ways if the company sticks by its former plan, the analyst tells investors. For Kroger, the immediate future will likely contain a buyback/share repurchase announcement, but the paths for both stocks always depend on inflation, comps and EBIT growth and these metrics are “decent” for Kroger, while “lackluster” for Albertsons, the analyst tells investors.
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