Market Overview

UPDATE: J.P. Morgan Raises PT on Kroger Following Recent Earnings

Share:
Related KR
Kroger CFO Schlotman Saying On Company Webcast That Harris Teeter Won't Be Its Last Acquisition
Kroger Shares Move Higher Following News Of Purchasing Hiller's Market Stores
Ingles Markets Is A Good Bet For Long-Term Gains (GuruFocus)

In a report published Friday, J.P. Morgan analyst Ken Goldman reiterated a Neutral rating on Kroger (NYSE: 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.”

Kroger closed on Thursday at $34.71.

Latest Ratings for KR

DateFirmActionFromTo
Mar 2015Deutsche BankMaintainsBuy
Mar 2015CitigroupMaintainsBuy
Mar 2015Deutsche BankMaintainsBuy

View More Analyst Ratings for KR
View the Latest Analyst Ratings

Posted-In: J.P. Morgan Ken GoldmanAnalyst Color Price Target Analyst Ratings

 

Related Articles (KR)

Around the Web, We're Loving...

Get Benzinga's Newsletters