Deutsche Bank Reiterates Buy, $28 Target on Kroger

Deutsche Bank maintains its Buy rating and $28 target price on Kroger KR ahead of the company's Q4 earnings. Deutsche Bank notes, "KR will report 4Q earnings on March 1. Our 4Q EPS est is $0.49, +6.6% YOY. Volumes have been declining across the traditional grocery channel given pressure on consumers and growing competition from non-traditional players. Nonetheless, KR is an exception, with an impressive record of consistent market share gains resulting from numerous competitive advantages. We are buyers of KR ahead of Thursday's print given KR's strong execution of its Customer First strategy, solid B/S & share repo, and valuation at just 10.5x FY12E EPS." KR closed at $23.54 on Friday.