Kroger Company (KR – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Robert Ohmes from Bank of America Securities reiterated a Buy rating on the stock and has a $75.00 price target.
Robert Ohmes has given his Buy rating due to a combination of factors that highlight Kroger Company’s strong financial performance and strategic positioning. The company’s fourth-quarter adjusted earnings per share exceeded expectations, and identical store sales, excluding fuel, showed a healthy increase. Despite a decline in net sales, largely due to the sale of Kroger Specialty Pharmacy and other factors, the company managed to improve its gross margin, benefiting from the sale of KSP and reduced shrinkage.
Furthermore, Ohmes maintains a positive outlook for Kroger’s future earnings, aligning with the company’s guidance. The anticipated growth in alternative profit streams, such as Retail Media, and the continued focus on digital sales and cost savings, support the long-term margin potential. Despite recent management changes, including the search for a new CEO, Ohmes believes Kroger is well-positioned in the grocery market, with strong digital and in-store execution bolstering its market share trends.
In another report released yesterday, Telsey Advisory also maintained a Buy rating on the stock with a $73.00 price target.
KR’s price has also changed moderately for the past six months – from $52.270 to $63.780, which is a 22.02% increase.