Balanced Risk-Reward Keeps Kroger at Hold Amid Soft Sales Growth and Limited Near-Term Catalysts

Paul Lejuez, an analyst from Citi, maintained the Hold rating on Kroger Company. The associated price target is $68.00.

Paul Lejuez has given his Hold rating due to a combination of factors that suggest a balanced risk‑reward profile for Kroger at this time. He expects fourth‑quarter results to land roughly in line with consensus, with modest same‑store sales growth and earnings per share only slightly above market expectations, while early guidance for fiscal 2026 points to subdued comp growth and an earnings range close to current Street estimates.

Lejuez also notes that regulatory changes to Medicaid drug pricing will pressure reported sales growth, even though the profit impact should be neutral to slightly positive via better gross margins, limiting fundamental downside but also capping upside momentum. In addition, while traffic trends have recently improved, broader spending data for the food retail category remain soft, and with a new CEO still in the early stages of outlining his strategy, Lejuez views the near‑term outlook as lacking clear catalysts that would warrant a more aggressive rating change.

In another report released on February 10, TipRanks – xAI also reiterated a Hold rating on the stock with a $75.00 price target.