Market Overview

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

Share:
Related KR
Wage Pressures And Holiday Comps In The Retail Sector
Citi: After Whole Foods, Here's 7 More Retailers Amazon Could Buy
Reporting Into Strength, Kroger Could Deliver A Beat (Seeking Alpha)

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
Nov 2017Goldman SachsAssumesNeutral
Nov 2017Northcoast ResearchUpgradesNeutralBuy
Oct 2017Pivotal ResearchMaintainsBuyBuy

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)

View Comments and Join the Discussion!

Partner Center