UPDATE: Credit Suisse Reiterates Outperform Rating, Raises PT on The Kroger Co. on Potential Share Gains

In a report published Tuesday, Credit Suisse analyst Edward J. Kelly reiterated an Outperform rating on The Kroger Co.

, and raised the price target from $33.00 to $38.00. In the report, Kelly noted, “Kroger's stock performance this year has surprised even its most bullish supporters, as the shares now sit at a level that once felt unachievable. Despite this performance, we believe the stock can grind higher this year given the company's prospects for steady sales and earnings growth, a somewhat more favorable industry backdrop, and still reasonable valuation. While much of investors' historical focus has been on the threat from non-traditional players like WMT, we believe Kroger's ability to consistently take share from structurally challenged supermarkets is still an underappreciated aspect of the story. We explore this catalyst in detail in this report. We also raised our estimates and target price to better reflect our positive view and overall improved market sentiment.” The Kroger Co. closed on Monday at $33.95.