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Kroger upgraded at Melius Research amid pharmacy tailwinds, digital progress

Melius Research upgraded Kroger (KR) to Hold from Sell with a two-year price target of $70, up from $58. The firm cites share gains from widespread pharmacy closures, limited exposure to tariffs within the retail landscape, and consistent free cash flow generation to support on-going investment and share repurchases for the upgrade. Additionally, Kroger’s strong loyalty program, digital, and delivery capabilities should help drive traffic and mitigate share losses, the analyst tells investors in a research note.

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