Kroger (KR) Price Target Raised to $50 at Deutsche Bank

Deutsche Bank maintained a Buy rating on Kroger (NYSE: KR) and raised its price target to $50.00 (from $46.00).

Analyst Karen Short said, "Our new PT is based on 7x our FY15E EBITDA, slightly above the company’s 6.5x historical average multiple. We believe historical valuation ranges are irrelevant however – and think KR deserves to trade at a premium to historical ranges given KR’s very strong execution, consistent market share gains, potential EPS upside from Harris Teeter, and the opportunity to pick up incremental market share over the next 12-18 months given the potential disruption from the pending SWY/Cerberus acquisition, which is expected to close in 4Q14. In 2015, we believe SWY/Cerberus will be very focused on integration, and believe KR is very well-positioned to capitalize on any disruption resulting from the transaction, and thus believe there could be additional upside to our model, particularly in FY15 (ending Jan. ’16)."

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 $44.68 yesterday.

You May Also Be Interested In

• Centene (CNC) PT Raised to $93 at Wells Fargo
• Skyward Specialty Insurance Group (SKWD) PT Raised to $42 at JMP Securities
• JPMorgan Upgrades HDFC Asset Management Co Ltd (HDFCAMC:IN) to Overweight