The Biggest Loser: Kroger Tumbles 9.2% Kroger tumbled today after getting cut by three sets of analysts. The acquisition of Whole Foods by Amazon added to its pain. By Ben Levisohn June 16, 2017 6:38 p.m. ET Kroger(KR) tumbled to the bottom of theS&P 500today afterAmazon.com(AMZN)agreed to buyWhole Foods Market(WFM). ILLUSTRATION:GETTY IMAGES Kroger dropped 9.2% to $22.29 today, while the S&P 500 finished little changed at 2,433.15. Lost amid the noise today was the fact that Kroger was downgraded byGoldman Sachs,Telsey Advisory, andJPMorgan, even before theAmazon-Whole Foodsannouncement. JPMorgan's Ken Goldmanand Thomas Palmerexplain why they cut Kroger to Neutral from Overweight: Although our inflation thesis remains intact, we are incrementally concerned about (a) the cost of Kroger’s comps, (b) the lack of operating leverage in Kroger’s current model, and (c) cash flow. We also think management’s visibility is at a multi-year low, as evidenced by the string of recent guide-downs. We reduce our EPS estimate for 2017E by 11% and for 2018E by 17%, as we think the risk of an earnings rebase has substantially increased. Our December 2017 price target goes to $24 from $34 and is based on 12x P/E and 6x EV/EBITDA – similar multiples to where the stock traded for many years before its 2014-15 expansion. At $24, we think the risk/reward on the shares is balanced. Kroger remains a strong company but even strong companies have tough times when value players get aggressive. Kroger's market capitalization fell to $20.3 billion today from $22.4 billion yesterday. It reported net income of $2 billion on sales of $115 billion in fiscal 2017. Kroger was alsothe biggest loser yesterday. Irecommended avoiding KrogerinBarron's Tradercolumn over the weekend.