Jefferies Cuts Price Target on Kroger (KR) to $37 Ahead of 2Q Report
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Jefferies maintained a Hold rating on Kroger (NYSE: KR), and cut the price target to $37.00 (from $39.00), ahead of the company's 2Q earnings report. KR is expecting a relatively in line quarter. However, the did lower comp estimates to 2.2% (From 2.8%) as deflation worsens.
Analyst Christopher Mandeville commented, "With CPI data showing a recent pickup in deflation, we lower our 2Q16 comp but maintain a $0.45 EPS est. (in-line with cons.) as strong fuel margins and cont'd execution on driving tonnage (aka GP$) growth in core grocery act as an offset. While 2Q16 earnings may be safe, a slowing top line, heightened fears over a more aggressive pricing environment and potential risk to 2H16 earnings warrants a reduced multiple. We lower our PT to $37 from $39."
Shares of Kroger closed at $32.16 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
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