Melius Research on Tu🧜esday recommended selling Kroger stock, citing concerns about the fu🅺ndamentals of the supermarket chain.

Melius gave Kroger (KR) a 澳洲幸运5官方开奖结果体彩网:price target of $58, which is 17% below where the shares closed Tuesday. Melius’s stance appears to be an outlier amon🐭g analysts, with half of those who follow the company and were polled by Visible Alpha giving Kroger shares a “buy” rating and ꧃half a “hold” rating. 

The Melius research team described Kroger as “a deteriorating business” facing several issues. Melius said Kroger is losing customers to Walmart (WMT), may be liable for billions in a lawsuit brought by Albertsons (ACI), and is contending with leadership vacancies. Former CEO Rodney McMullen 澳洲幸运5官方开奖结果体彩网:resigned last month after a probe into his conduct. 

“Investors today believe they can ‘hide’ in [Kroger] given the company’s lack of tariff exposure,” Melius wrote🎉 in a note on Tuesday. “Lack of tariff exposure does not make [Kroger] safe.”

Company executives reportedly said in early March that as a domestic retailer, Kroger has less exposure to international tariffs than some of its rivals, and would not face "a massive impact."

K𓄧roger Stock Rose After C♎ollapse of Albertsons Merger

Kroger shares have shot up almost 20% over the past six months. Some traders may view the stock as a safe investment because supermarkets are relatively insulated from tariffs, Melius said. 

Investors also snapped up Kroger shares late last year when Kroger and Albertsons abandoned plans to merge after a 澳洲幸运5官方开奖结果体彩网:judge blocked the deal. (Albertsons 澳洲幸运5官方开奖结果体彩网:filed a lawsuit alleging Kroger’s efforts to secure approvals for the merger were deficient, a♑nd Krogeಞr called the claims baseless.)

Kroger shares finished up about 0.6% Tuesday, at about $68.12. That’s slightly above the $67.67 consensus price target compiled by Visible Alpha.