Analyst Robert Ohmes from Bank of America Securities reiterated a Buy rating on Kroger Company and keeping the price target at $85.00.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Robert Ohmes has given his Buy rating due to a combination of factors that highlight Kroger Company’s strong positioning and potential for growth. Despite softer than expected identical store sales in the third quarter, the company’s adjusted earnings per share met expectations, and there are positive indicators for future performance. Kroger’s digital and in-store operations are robust, with significant contributions from pharmacy and digital sales, and the company is making strategic investments in pricing and promotions to enhance its value perception.
Additionally, Kroger’s e-commerce business is on track to achieve profitability by 2026, bolstered by strategic decisions such as closing underperforming facilities and expanding partnerships with delivery services like Instacart and Uber Eats. The company’s long-term outlook is further supported by growth in alternative profit streams and cost-saving measures, which are expected to sustain margins. These factors, combined with a strong focus on Own Brands and an anticipated improvement in gross margins, underpin Ohmes’s confidence in Kroger’s ability to deliver value to shareholders.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $70.00 price target.
KR’s price has also changed slightly for the past six months – from $66.340 to $63.140, which is a -4.82% drop .