Morgan Stanley analyst Simeon Gutman reiterated an Equalweight rating and $34.00 price target on Kroger (NYSE: KR) stating a significant Q1 beat should be expected, the stock has re-rated higher, and the food at home shift is continuing longer than expected.

The analyst stated "Price target of $34 is based on ~14x our 2021e EPS of ~$2.45 (~6.5x EV/EBITDA). This is 1x above KR's 5-year average of ~13x (range 9-19x),and primarily reflects near-term strength on COVID-19 demand uplift and higher profitability,as well as the potential for persistent share shift to Food at Home. This is partially offset by continued industry pressures longer-term from a heightened promotional environment and accelerating online investments."

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 $32.57 yesterday.