NEW YORK (TheStreet) -- The Kroger Co's (KR) "buy" rating was reiterated by analysts at Argus Research this morning based on the company's announcement that it agreed to purchase the online retailer of health and wellness products Vitacost.com (VITC) for $280 million.
Kroger, a food retailer, said the merger will help the company expand into a new market as Vitacost.com brings to the company a strong position as one of the largest pure ecommerce companies in the nutrition and healthy living market.
The transaction is expected to close in the 2014 third quarter.
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Shares of Kroger are up 0.51% to $49.68 at the start of trading on Thursday.
Separately, TheStreet Ratings team rates KROGER CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate KROGER CO (KR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."