Market Overview

UPDATE: Goldman Sachs Downgrades Kroger on Continued Downside

Share:
Related KR
Jim Cramer Advises His Viewers On STMicroelectronics And Kroger
Potential Cuts To Supplemental Nutrition Assistance Program Benefits Put These Top Lines At Risk
Looking at Kroger Ahead of March — Earnings Call (GuruFocus)

In a report published Friday, Goldman Sachs analyst Stephen Grambling downgraded the rating on Kroger (NYSE: KR) from Neutral to Sell, but raised the price target from $32.00 to $35.00.

In the report, Goldman Sachs noted, “We are downgrading The Kroger Co. (KR) to Sell from Neutral with 7% downside to our new $35, 12-month price target vs. 1% average upside for our coverage. We see unfavorable risk/reward as the shares now trade at a premium valuation relative to their history (13X NTM P/E vs. 5-yr average of 11.4X), industry tailwinds are fading, and our analysis suggests the market may already be pricing in upside to management's HTSI accretion guidance. We believe core EBITDA growth (excluding any acquisitions or synergies) will moderate amidst a soft industry backdrop, making the elevated valuation tough to sustain.”

Kroger closed on Thursday at $37.79.

Latest Ratings for KR

DateFirmActionFromTo
Dec 2016PiperJaffrayUpgradesUnderweightNeutral
Sep 2016JefferiesMaintainsHold
Sep 2016BarclaysInitiates Coverage onEqual-Weight

View More Analyst Ratings for KR
View the Latest Analyst Ratings

Posted-In: Goldman Sachs Stephen GramblingAnalyst Color Downgrades Analyst Ratings

 

Related Articles (KR)

View Comments and Join the Discussion!