Oppenheimer Cuts Price Target on Kroger (KR) Following Soft 4Q
Oppenheimer maintained an Outperform rating on Kroger (NYSE: KR), and cut the price target to $42.00 (from $47.00), following the company's 4Q earnings report. As Oppenheimer maintains a positive view toward KR shares, it is believed that the N-T outlook could remain choppy in light of deflationary pressures and slowing comp trends.
Analyst Rupesh Parikh commented, "Following KR’s softer than expected Q4 report, we have received a number of inquiries for our latest thinking on the name. KR has been the steadiest performer in our grocery coverage universe the past several years, so it was clearly a surprise for Q4 comps to fall short of guidance. As we look at KR’s prospects over the next 12-18 months, we still believe there is a case for outperformance. We lay out key reasons why we continue to stick with the name inside. Although we maintain a positive view toward KR shares, we believe the N-T outlook could remain choppy in light of deflationary pressures and slowing comp trends. KR shares, in our view, set up best for investors with a multi-quarter horizon."
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Shares of Kroger closed at $36.84 yesterday.