Jefferies Maintains a 'Buy' on Kroger (KR); Flat Volumes Not Going to Stand

Jefferies maintains a 'Buy' on Kroger (NYSE: KR) price target lowered $1 to $26.

Jefferies analyst says, "KR’s below-expectations 2Q served to underscore the very challenging backdrop that is pressuring the entire food vertical, including the mighty Kroger. While the company clearly remains one of the best operators, KR is taking actions to improve its sluggish volumes, suggesting the potential for some incremental gross margin and earnings pressure in the back half if the environment remains difficult or worsens." (Jefferies cuts FY12 EPS estimate from $2.21 to $1.93)

For more ratings news on Kroger click here and for the rating history of Kroger click here.

Shares of Kroger closed at $22.02 yesterday.

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