Jefferies Upgrades Kroger (KR) to Buy; Boring, But Good

Jefferies upgraded Kroger (NYSE: KR) from Hold to Buy with a price target of $30.00 (from $25.00).

The firm comments, "Kroger, we believe, is focused on improving ROIC, while continuing to gain market share, which should lead to growing EBITDA and higher EPS. Indeed, our research indicates that KR is currently seeing further market share gains likely at the expense of its peers. A very reasonable current valuation and a 2.5% yield also suggest investors will be well rewarded."

FY12 EPS goes from $2.39 to $2.41 and FY13 from $2.50 to $2.70.

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 $23.43 yesterday.

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