UPDATE: Goldman Sachs Raises PT on The Kroger Co. Following Headquarters Meetings
In a report published Thursday, Goldman Sachs analyst Stephen Grambling reiterated a Neutral rating on The Kroger Co. (NYSE: KR), and raised the price target from $28.00 to $30.00.
In the report, Grambling noted, “We hosted meetings at Kroger headquarters with Chairman & CEO David Dillon, President & COO Rodney McMullen, SVP & CFO Michael Schlotman, SVP of Merchandising Michael Donnelly, and Director of IR Cindy Holmes. Management maintained confidence in growing EBITDA and achieving its upwardly revised long-term EPS growth targets of 8-11%. In addition to accelerating unit growth, these targets will be supported by: (1) Price – Improving customer perception. Management still plans to invest in price, but they are equally focused on improving customer perception of price, which is below reality. (2) Products – Share gains in wellness. Key opportunities in wellness included the launch of KR's natural and organic private label Simple Truth, improved freshness and assortment in perishables, and driving pharmacy.(3) People – A ‘private company' culture. Employees are expected to look beyond the next quarter and feel they directly impact the business. (4) Shopping Experience – Accelerating digital. New hires and leveraging existing resources should enable KR to close its gap with peers.”
The Kroger Co. closed on Wednesday at $33.10.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.