Kroger Posts Q1 Beat: Analyst Raises Price Target To Reflect Continued Growth, Market Share Gains

Kroger Co.'s KR first-quarter results reflected that the company "continues to execute well, leveraging its fresh and own brands assortments, robust loyalty program, and enhanced digital capabilities," according to Telsey Advisory Group.

The Kroger Analyst: Analyst Joseph Feldman reiterated an Outperform rating and raised the price target from $73 to $82.

The Kroger Thesis: The company reported adjusted earnings of $1.49 per share, beating the consensus of $1.45 per share, with higher-than-expected same-store sales, despite "an uneven consumer spending environment," Feldman said in the note.

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Kroger raised its same-store sales, ex-fuel, guidance for 2025 from 2%-3% to 2.25%-3.25% and "conservatively maintained its profit projections," he added.

"Kroger is operating from a position of strength, with momentum in the business and a solid strategy for 2025+," the analyst wrote.

Feldman expects Kroger's growth and market share gains to continue, driven by the company’s expansion into new geographies, increasing its product assortment, improving its digital experience, and building loyalty with personalization and paid memberships.

KR Price Action: At the time of publication on Monday, Kroger’s shares had risen by 2.77% to $73.96.

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