Grocery-store chain Kroger's operating margin growth could benefit from a changing product mix and diminishing competition from Wal-Mart.
BMO Capital Markets has upgraded Kroger (NYSE:KR) to outperform from market perform and raised the price target to 58 from 52.
There's less competitive threat from Wal-Mart (NYSE:WMT), BMO says, because Wal-Mart's Neighborhood Market stores have lost market share in about a third of their top 20 market locations in the past several years. Wal-Mart has also been slow to adapt to natural and organic food trends, while Kroger has paid them more attention, according to BMO.
To read the rest of the story, please go to: Investor's Business Daily
