JPMorgan Reiterates Overweight Rating on Kroger (KR)
JPMorgan analyst Ken Goldman reiterated an Overweight rating and $71.00 price target on Kroger (NYSE: KR).
The analyst comments "Overall, we didn’t hear much on the call that we found particularly notable. And we appreciate the randomness, for lack of a better word, of some of the company’s C-suite departures. Whatever the reasons, however, it’s hard not to notice how many experienced KR leaders have left over the last year, from CFO Gary Millership (to COST, covered by Chris Horvers), to Stuart Aitken (to Circana), to Todd Foley (retirement), and now to Rodney McMullen (resignation). It’s been something of an exodus from Cincinnati. One of the reasons for our initial optimism about KR – we upgraded to Overweight from Neutral exactly two years ago today – was that, in our opinion, the quality of the company’s C-suite was underrated by some investors. Perhaps in six months or a year, when the dust settles, we will be able to say this again; for now, though, there are many unknowns. In terms of the pre-announcement, the annual ID ex-fuel figure of ~1.5% perhaps implies a minimum 4Q24 of 2.1% versus CM 1.9%, though we think many investors already were looking for a figure in the low 2% range. Implied 4Q24 EPS are at least $1.12 versus CM $1.11."
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 $64.82 yesterday.