05:14 PM EDT, 06/13/2024 (MT Newswires) -- Kroge's (KR) stock is "fairly balanced" before fiscal Q1 results on June 20 as the risk of food deflation eases, while grocery competition increases, UBS Securities said in a report emailed Thursday.

"There's no significant change to its outlook for the year," UBS said. Still, the company "will need to speak to how it is going to stabilize market share" amid competition from Costco (COST) and Walmart ( WMT ) , the report said.

"A broad-based deflation in food in 2024 was seen as one of the major risks facing the industry, but this seems like a less likely scenario now," UBS said.

Kroger ( KR ) "is still facing some uncertainty" related to promotional backdrop, gas profitability, a pending meger with Albertsons and the search for a permanent chief financial officer, UBS said.

UBS maintained its neutral rating on Kroger ( KR ) stock and its $58 price target with a "balanced diet of risk and reward."

Kroger ( KR ) shares fell 0.3% in recent after-hours trading.

Price: 50.36, Change: -0.16, Percent Change: -0.32