UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on The Kroger Co. Following Recent Earnings

In a report published Friday, J.P. Morgan analyst Ken Goldman reiterated a Neutral rating on The Kroger Co. KR, and raised the price target from $35.00 to $38.00. In the report, J.P. Morgan noted, “Following recent earnings, we are reiterating our Neutral rating but raising estimates. The company continues to boast stable growth despite somewhat uncertain macroeconomic and industry trends. And we see less gross margin pressure going forward due to a combination of reduced input cost pressure, improved management of price investments, and the benefit from generic drugs. We thus raise our FY13E and FY14E earnings estimates. In addition, we are raising our valuation multiples slightly as we believe Kroger's steady performance warrants a greater premium versus its traditional grocer peers (and less of a discount vs. the non-conventional grocers). Our Dec-13 price target goes to $38 from $35. Over the long run, we think traditional grocers will continue to cede share; however, for investors seeking stable growth at a more than reasonable price, KR probably should be considered.” The Kroger Co. closed on Thursday at $34.71.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPrice TargetAnalyst RatingsJ.P. MorganKen Goldman
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!