BUZZ-Kroger drops on deal to buy grocer Giant Eagle

Target Corporation
Kroger Co.
Walmart Inc.
S&P 500 index

Target Corporation

TGT

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Kroger Co.

KR

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Walmart Inc.

WMT

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S&P 500 index

SPX

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** Kroger's KR.N shares drop 2.3% to $54.26 on Weds after co said it would buy regional grocer Giant Eagle in $1.65 bln deal amid heightening competition

** The transaction, comprising $1.25 bln in cash and assumption of $400 mln in liabilities, aims to strengthen KR's presence in the Midwest and Mid-Atlantic

** KR has been battling Walmart WMT.O and traditional grocers including Target TGT.N, as well as specialty retailers Trader Joe's and discounters like Aldi for value-conscious shoppers

** Shares of WMT down about 5% and TGT stock off 2% on Weds

** Including move on the session, KR shares down ~13% YTD, well underperforming S&P 500's .SPX 9.5% advance

** Of 25 analysts covering the stock, 12 rate "strong buy" or "buy", 13 "hold"; median PT of $72 down from $77 a month ago, per LSEG data


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