Kroger downgraded to Sell from Hold at Melius on Walmart competition

As previously reported, Melius Research downgraded Kroger (KR) to Sell from Hold with a $58 price target, citing the fact that Walmart (WMT) is gaining share across most categories due to the latter’s “significant” price gaps to conventional operators, “significantly improved” service levels and fresh offerings and its “clear advantage on digital.” In addition, the analyst calls out Kroger’s own issues, including a lack of a permanent CEO and a CFO who is “unseasoned in grocery retail.”