Melius Research on Tuesday recommended selling Kroger stock, citing concerns about the fu�ไ�ndamentals of the supermarket chain.

Melius gave Kroger (KR) a 澳洲幸运5开奖号码历史查询:price target of $58, which is 17% below where the shares closed Tuesday. Melius’s stance appears to be an outlie෴r among analysts, with half of those w🐬ho 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开奖号码历史查询: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 𒊎note on Tue𒆙sday. “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."

K🥂roger Stock Rose After Collapse 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开奖号码历史查询:judge blocked the deal. (Albertsons 澳洲幸运5开奖号码历史查询:filed a lawsuit alleging Kroger’s efforts to secure approvals fꦿor the merger were deficient, a🐻nd Kroger 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.