UPDATE: Citigroup Reiterates Buy Rating, Raises PT on Kroger

In a report published Monday, Citigroup reiterated its Buy rating on Kroger Co.

, and raised its price target from $31.00 to $33.00. Citigroup noted, “Kroger reported 2Q12 EPS of $0.51 per diluted share, in-line with our estimate of $0.51, above consensus of $0.49, and vs. $0.46 last year. EPS were driven by higher sales/IDS, slightly better SG&A leverage, a lower tax rate, and higher share repurchases, offset by a slightly lower gross margin rate and higher interest expense. IDS of +3.6% were above our estimate of +3.5% and consensus of +3.4%. We were particularly impressed that tonnage was positive, given the competitive environment and inflation. We reiterate our Buy rating for KR, which is also on Top Picks Live!, and are increasing our target price to $33, vs. $31 prev.” Kroger Co. closed on Friday at $22.73.