The potential merger between Kroger (KR) and Albertsons (ACI) is drawing mixed reviews from Wall Street analysts. Jefferies analysts upgraded Kroger from Hold to Buy, expressing confidence in the company's potential upside,

With Kroger’s earnings due Thursday, one Wall Street team argues that it is time to toss the stock in the grocery cart, while another advises leaving it on the shelf. Jefferies analysts led by Rob Dickerson upgraded shares of the grocery-store chain to Buy from Hold and raised their target for the price to $73 from $54.

Key Takeaways Kroger is scheduled to report third-quarter results Thursday morning, with its proposed merger with Albertsons in legal limbo.Analysts expect higher sales and profits than a year ago, though the average price target suggests analysts expect Kroger's stock to decline from recent highs.

Lululemon Athletica is slated to report fiscal third-quarter earnings after the closing bell Thursday. Wall Street analysts' ratings are largely bullish heading into the report.