Goldman Sachs Lifts Estimates and Price Target on Kroger (KR), Keeps 'Sell'

Article Stock Quotes (1) Comments (0)

Goldman Sachs bumped estimates and its price target on Kroger (NYSE: KR) from $20 to $21.50 but kept its Sell rating following 4Q EPS of $0.50, ahead of GS/consensus as a weaker EBIT was more than offset by a lower tax rate and share repurchases.

The firm's FY12/13 EPS estimates increase to $2.23/$2.28 from $2.17/$2.26 as they factor in a lower diluted average share count on the greater than expected buyback.

"We maintain our Sell rating as underlying trends fell short of our expectations and the more aggressive guidance limits potential beats going forward." The firm cited EBITDA growth turned negative, gross margin pressure continued even as inflation eased and guidance sets a high bar for FY13.

For an analyst ratings summary and ratings history on Kroger click here. For more ratings news on Kroger click here.

Shares of Kroger closed at $24.44 yesterday, with a 52 week range of $21.14-$25.85.

---

Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW

---

*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here

---

---

You May Also Be Interested In

• Morgan Stanley Says Tesla (TSLA) 'Top Pick in U.S. Autos'
• Goldman Sachs Upgrades Ruckus Wireless (RKUS) to Buy, 'Pullback Creates Opportunity'
• Needham & Company Remains on Sidelines wth Applied Materials (AMAT) Post Q2

Create E-mail Alert Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

Related Entities

Goldman Sachs

Add Your Comment

Name

Subject

Body

Share on Facebook

Verification
can't see the text?
click here to refresh the image.
what's this?