Supermarket Stocks Are Tumbling as Analysts Remain Skeptical for Now

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Supermarket stocks are taking a tumble today, hurt by downgrades and a decline in a number of retail stocks that recently shot higher.

Telsey Advisory Group’s Joseph Feldman downgraded the stock today to Market Perform from Outperform, while cutting his price target to $39 from $43. Feldman doesn’t mention the short squeeze, but thinks there are fundamental reasons to be more cautious on the stock. “Kroger could be a victim of its own success—as it laps difficult comparisons in 2021 related to the Covid-19 surge in demand of food products from the uptick in at-home consumption,” he said. The stock is moving in the right direction, but the near-term looks cloudy, Feldman said, leading him to step to the sidelines.

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