Shares in U.S. retail chain Kroger (KR) checked out higher today as analysts queued up to praise its sales prospects.
A Position of Strength
Kroger reported earlier this week that it expects sales excluding fuel to grow by between 2 to 3% this year, at the higher end of Wall Street forecasts. Its confidence, despite some considerable headwinds in the U.S. consumer sector given tariffs and economic concerns, has played well with analysts.
Four-star TipRanks-rated Rob Dickerson of Jefferies reiterated his Buy rating on the stock with a $75 price target. Dickerson said that while the consumer backdrop remains uncertain given financial pressures on more budget-conscious households, he believes that Kroger is “operating from a position of strength,” having weathered the worst of the shift towards e-commerce and benefiting from an inflation uptick.
Roth MKM analyst Bill Kirk raised his price target on Kroger to $58 from $56 but kept a Neutral rating on the shares. He said the group’s Q4 result surpassed expectations despite below-plan advertising revenue and fuel headwinds. Kirk however warned that the company’s margin expansion was slowing and uncertainty is increasing.
No Boss No Problem
Near five-star TipRanks-rated Citi analyst Paul Lejuez raised his price target on Kroger to $65 from $61 and kept a Neutral rating on the shares. He said that despite the lack of permanent management in place, Kroger is performing well.
This, of course, refers to chief executive Rodney McMullen who resigned this week amid accusations about his personal conduct. Indeed, on that point Dickerson said one impact on the business could be a slowdown in capital spending decisions – such as new store openings – until a new set of leaders is able to set its own course.
Is KR a Good Stock to Buy Now?
On TipRanks, KR has a Moderate Buy consensus based on 9 Buy and 6 Hold ratings. Its highest price target is $75. KR stock’s consensus price target is $68.93 implying an 2.73% upside.
