UBS Maintains a Hold Rating on The Kroger Co (KR)

The Kroger Co. (NYSE:KR) is one of the Blue Chip Stocks to Buy with the Lowest PE Ratios. On September 5, Michael Lasser of UBS maintained a Hold rating on The Kroger Co. (NYSE:KR) with a price target of $74.

The analyst noted that he sees the company taking steps towards improving its operations under the interim CEO, Ron Sargent. These include enhancing store offerings, e-commerce, and pricing strategies. However, analyst Lasser believes that the company faces strong competition from Walmart, Costco, and Amazon’s growing grocery presence, which is causing pressure on the company’s potential to gain market share.

He notes that as a result of promotional activities and tougher sales comparisons in the second half of the year, the margins might come under pressure. However, despite the challenges, The Kroger Co. (NYSE:KR) is investing in key growth areas and working to streamline its business, which improves its long-term prospects.

The Kroger Co. (NYSE:KR) is a food and drug retailer operating supermarkets, pharmacies, and fuel centers across the United States.

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Disclosure: None. This article is originally published at Insider Monkey.