The potential merger between Kroger (KR) and Albertsons (ACI) is drawing mixed reviews from Wall Street analysts.

Jefferies analysts upgraded Kroger from Hold to Buy, expressing confidence in the company's potential upside, regardless of the outcome of the Albertsons acquisition. They project double-digit profits and free cash flow in fiscal years 2026-2028.

In contrast, BMO Capital Markets adopts a more cautious stance, downgrading the stock to Market Perform from Outperform. The firm argues that potential benefits from the merger are already factored into the current stock price, and further appreciation would require Kroger to meaningfully expand its market share.

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This post was written by Angel Smith