Kroger price target raised to $66 from $58 at Roth Capital

Roth Capital raised the firm’s price target on Kroger (KR) to $66 from $58 but keeps a Neutral rating on the shares ahead of its Q2 results. Consumption shifts toward at-home purchases and reasonable consensus expectations set the stage for upside in Kroger’s earnings, but inflation passthrough remains challenging and likely a headwind to the grocer’s full earnings potential, the analyst tells investors in a research note. Competition also appears to be increasing, tempering the firm’s expectations beyond this most immediate print, Roth added.