Daily Ideas·Pitch·KR·2024年1月31日

With The Merger Between Albertsons And Kroger Almost Certain To Fail, I Smell A Discount

Daniel Jones
YellowBrick

ACI -29% from KR's $34.10 deal price on high regulatory risk, but cheap at 6x forward P/E vs peers ~10x. KR+ACI committed to H1 '24 close w/ price cuts, worker benefits. ACI a buy: limited downside if deal fails, 40% upside if it closes.

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