Building a Bigger Nest

研报英文原文证据摘录

Building a Bigger Nest

Update

July 1, 2026 09:09 PM GMT

Morgan Stanley & Co. LLCMKroger Co. | North America Simeon Gutman, CFA

Equity Analyst

Building a Bigger Nest Simeon.Gutman@morganstanley.comPedro Gil, CFA +1 212 761-3920

Pedro.Gil@morganstanley.com +1 212 761-2022

Giant Eagle would strengthen KR's competitive position through Zachary Abraham

greater scale and entry into contiguous markets. Acquisition Research Associate

Zach.Abraham@morganstanley.com +1 212 761-5977

introduces integration alongside strategic price investments, Skylar Tennant

operational improvements, and a broader effort to regain share. ResearchSkylar.Tennant1@morganstanley.comAssociate +1 212 761-9963

9 thoughts on KR's proposed acquisition of Giant Eagle. Kroger Co. (KR.N, KR UN)

Hardline/Broadline/Food Retail | United States of America

1. Our view: mixed. We view KR's acquisition of Giant Eagle as strategically logical

Stock Rating Equal-weight

given the importance of scale as competition intensifies across Food Retail. The Industry View In-Line

timing is notable. KR is early in a multi-year effort to improve competitiveness Price target $67.00

Shr price, close (Jun 30, 2026) $55.53

through strategic price investments and operational enhancements under CEO Greg Mkt cap, curr (mm) $33,984

Foran. While we believe Giant Eagle could ultimately strengthen KR's market 52-Week Range $76.58-54.98

position, it also adds execution and integration "to-dos" at a crucial time. Fiscal Year Ending 02/26 02/27e 02/28e 02/29e

EPS ($)** 4.86 5.18 5.35 5.74

2. Giant Eagle would modestly expand KR's footprint. The acquisition adds 197 ModelWare EPS ($) 4.89 5.20 5.38 5.76

P/E 12.9 10.7 10.3 9.6

supermarkets and 11 pharmacies across Pennsylvania, Ohio, West Virginia, Maryland, Div yld (%) 2.2 2.5 2.5 2.6