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

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.

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