Citi analyst Alvin Concepcion weighs in on the speculation yesterday that Kroger (KR) could be interested in acquiring Whole Foods (WFM) for $40 per share. There are challenges that reduce the likelihood of a deal, and such a transaction could be uncharacteristic for Kroger, Concepcion tells investors in a research note. For one, the acquisition would be expensive, the analyst contends. And two, Kroger would have to lever up to 3.5 times net debt/EBITDA, he adds. The analyst keeps a Buy rating on Kroger with a $39 price target. Whole Foods yesterday closed up 5% to $29.33 amid the takeout rumor.

Attorney General Bob Ferguson announced he signed onto a pending resolution with Kroger that will bring in $47.5M to combat the opioid epidemic in Washington state. Half of these resources will go to the state and the other half will go to Washington city and county governments. The $47.5M will be paid over 11 years. The first payment of $4.3M will come within a few months of the resolution being finalized by the litigating states and local jurisdictions, Ferguson said in a statement.

JPMorgan analyst Ken Goldman added Albertsons (ACI) to the firm's Analyst Focus List as a value idea and placed the stock on "Positive Catalyst Watch" following the fiscal Q4 earnings release. The "gap between the current share price and fair value is too wide," the analyst tells investors in a research note. The firm says its trimming of out-year estimates does not impair Albertsons' standalone value, which it estimates at $24 per share. JPMorgan continues to believe the stock's valuation discount to Kroger (KR) is too wide given the companies similarities. It also believes the probability that Albertsons gets bought has increased, given yesterday's announcement that additional stores and services will be sent C&S's way. The firm says the risk/reward for Albertsons stock "is becoming too appealing to ignore." It keeps an Overweight rating on the name with a $27 price target.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here