Kroger Company (KR – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst on June 20. Analyst Edward Kelly from Wells Fargo maintained a Buy rating on the stock and has a $78.00 price target.
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Edward Kelly has given his Buy rating due to a combination of factors that highlight Kroger Company’s strong position in the market. The company’s first-quarter performance was promising, with improvements in identical sales and gross margins. This suggests that Kroger is effectively leveraging trends in fresh and private label products, which are key growth areas. Additionally, the management’s strategic focus on market share, customer experience, and e-commerce profitability is seen as a positive shift, especially with the ongoing search for a new CEO.
Furthermore, the fiscal year guidance appears conservative, indicating potential for outperformance as the year progresses. Kroger’s commitment to ramping up its share repurchase program is another catalyst for growth, supported by the company’s solid financial position, operating well below its leverage target. These factors, combined with the defensive nature of the stock, make Kroger an attractive investment opportunity in the staples sector.
In another report released on June 20, Bank of America Securities also reiterated a Buy rating on the stock with a $75.00 price target.
KR’s price has also changed moderately for the past six months – from $61.850 to $71.970, which is a 16.36% increase.