Kroger (KR) PT Raised to $54 at Jefferies, 'Traffic Momentum Drives IDs, but Sustainability the Question'
Jefferies analyst Rob Dickerson raised the price target on Kroger (NYSE: KR) to $54.00 (from $53.00) while maintaining a Hold rating.
The analyst comments "KR's stock had a strong day post Q2 results as ID sales +1.2% was ~40 bps ahead of cons. and strong GM% was used to fund higher OG&A. Mgmt raised low end of the ID guide, an outcome we thought a possibility given improved foot traffic trends through July, and spoke to Q3 thus far pacing ahead of Q2. That said, with FY'24 inflation still expected ~1%, implications are for H2 accelerated unit growth in a highly competitive environment. Reiterate HOLD."