Deutsche Bank Maintains Buy, $28 PT on Kroger

Deutsche Bank reiterates its Buy rating and $28 price target on Kroger Co. (NYSE: KR) ahead of its 3Q results and on share gains and buybacks.

Deutsche Bank comments, “Kroger reports 3Q11 earnings on December 1st. We are forecasting 3Q11 EPS of $0.34, $0.03 above the Street. We continue to like KR shares going into the print, particularly on the heels of a soft 2Q in early September. With KR trading at just 10.0x our FY12E EPS, we like the risk/reward, particularly given key strengths, including KR's large scale, strong local market share positions, excellent loyalty card program, and share buybacks.”

KR closed at $22.68 per share on Monday, up 2.35 percent.