In a report released yesterday, Edward Kelly from Wells Fargo maintained a Buy rating on Kroger Company (KR – Research Report), with a price target of $73.00.
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Edward Kelly has given his Buy rating due to a combination of factors including Kroger’s recent agreement with Express Scripts, which is expected to positively impact their sales and competitive position. The reestablishment of this agreement should help Kroger recover some of the sales it lost after terminating the previous deal in 2022, which could improve its in-store sales and customer traffic.
Additionally, Kelly notes that while the retail sector for staple goods has faced challenges, the underlying fundamentals show signs of improvement. He anticipates potential upside in Kroger’s fourth-quarter performance, driven by favorable weather and conservative guidance. Furthermore, Kelly highlights the potential for significant share repurchases, indicating confidence in Kroger’s financial position and valuation, which remains attractive despite recent stock performance.
In another report released on February 4, Goldman Sachs also initiated coverage with a Buy rating on the stock with a $70.00 price target.
Based on the recent corporate insider activity of 94 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KR in relation to earlier this year.