Jefferies Lowers Numbers on Kroger (KR) After Q1

Jefferies adjusted estimates and cut its price target on Hold-rated Kroger (NYSE: KR) from $27.00 to $25.00 following better than expected Q1 results, although operating performance gives them pause.

The firm comments, "EBITDA $’s were essentially flat even though KR pulled forward pension expenses into last year. We are also cautious given the increasing store opening activity from WMT, along with its rejuvenated EDLP strategy. Despite back half expectations that may be too high, KR’s strong store execution and market share remain enviable."

Q2 EPS goes from $0.50 to $0.49, FY12 goes from $2.34 to $2.37 and FY13 goes from $2.50 to $2.49.

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 $22.81 yesterday.

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