BofA Turns Bullish On Kroger - Read Why

• BofA analysts Robert Ohmes and Kendall Toscano upgraded Kroger Co (NYSE:KR) to Buy from Neutral with a price target of $75, up from $61, implying a 22% upside.
• The analysts noted that elevated food inflation should continue for at least the next six months. 
• The analysts added that the price increases are passed on to the U.S. consumers, given a 6% year-over-year rise in hourly earnings.
• They think that the broad-based inflation could drive consumers to retailers, seeking more variety as consumption shifts towards value.
• Ohmes and Toscano believe the compounding inflation levels will result in a significant EPS upside for the retailer.
• Price Action: KR shares are trading higher by 2.99% at $61.67 on the last check Friday.