Oppenheimer Cuts Price Target on Kroger (KR) to $40 Ahead of 2Q
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Oppenheimer maintained an Outperform rating on Kroger (NYSE: KR), and cut the price target to $40.00 (from $42.00), ahead of the company's 2Q earnings report. Sentiment remains negative toward KR shares as Oppenheimer expects management will likely cut both Comp and EPS guidance.
Analyst Rupesh Parikh commented, "In recent months, we have been hard-pressed to find really anything positive on the grocery front. As we spent time reviewing KR’s prospects into the print, we focused our efforts on assessing where the shares could bottom with our now more realistic earnings forecasts. Yes, the top line likely remains very challenging, and we expect another comp shortfall as we are still in the middle of a difficult deflationary and an increasingly promotional environment. As a result, shorter-term investors still need to proceed with caution, especially with accelerating deflationary headwinds lately. However, for longer-term investors, the business's underlying cash generation remains very strong, which suggests KR shares could be approaching a near-term bottom. We would take advantage of any weakness on the print."
Shares of Kroger closed at $32.25 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Imperial Capital Raises Price Target on Proofpoint (PFPT) Following Strong 3Q Results
- KLA-Tencor (KLAC) PT Raised to $85 at Cowen
- Maxim Integrated (MXIM) PT Bumped to $45 at Jefferies Following In-Line Results on Note 7 Impact
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!