Several brokerages have updated their recommendations and price targets on shares of Kroger (NYSE: KR) in the last few weeks:
- 3/6/2018 – Kroger was given a new $32.00 price target on by analysts at Pivotal Research. They now have a “buy” rating on the stock. They wrote, “We expect management will also provide tax rate guidance on Thursday and more color on the after-tax proceeds from the c- store sale. We’ve assumed roughly $1.4-$1.5 billion of debt reduction in FY18 based on the sale. We’ve further refined our revenue, share count, rent, D&A, and margin assumptions based on the c-store sale to EG Group. Our 4Q17 EPS est. is unchanged at $0.61 and this assumes ID sales growth (ex. fuel) of +1.3% based on strong execution in the latest quarter. As summarized in this note, we estimate that Kroger comped positively in 80% of its markets during the latest quarter. That said, it’s also clear that the pricing environment remains extremely competitive. We’re also seeing very strong top-line performance by Aldi and WMT based on analysis of our data. Following the recent 50 bps decline in Walmart’s U.S.””
- 3/2/2018 – Kroger was given a new $31.00 price target on by analysts at BMO Capital Markets. They now have a “hold” rating on the stock.
- 3/2/2018 – Kroger was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $30.00 price target on the stock. According to Zacks, “Kroger has been trying all means to overcome competition, which has intensified with the foray of Amazon, volatility in food prices and promotional environment. The company is expanding store base, introducing new items, digital coupons, and order online, pick up in store initiative. The company’s “Restock Kroger” program is gaining traction. The company's operational strategies present enormous opportunities to augment identical supermarket sales and enhance return on invested capital. These endeavors are likely to fuel top-line growth. In our view, Kroger’s long term earnings per share growth rate target of 8% to 11% seem achievable. All these provided a much needed boost to the stock that outpaced the industry in the past six months. However, higher investments in new services and compelling pricing strategy may hurt margins. Further, a high debt load may impact credit worthiness. Estimates have been stable lately.”
- 2/28/2018 – Kroger had its “outperform” rating reaffirmed by analysts at Royal Bank of Canada. They now have a $38.00 price target on the stock.
- 2/6/2018 – Kroger had its price target raised by analysts at Morgan Stanley from $28.00 to $29.00. They now have an “equal weight” rating on the stock.
- 2/2/2018 – Kroger was downgraded by analysts at ValuEngine from a “buy” rating to a “hold” rating.
- 1/24/2018 – Kroger was given a new $31.00 price target on by analysts at BMO Capital Markets. They now have a “hold” rating on the stock.
- 1/16/2018 – Kroger was given a new $29.00 price target on by analysts at Stephens. They now have a “hold” rating on the stock.
Shares of Kroger Co (KR) opened at $28.01 on Wednesday. The company has a debt-to-equity ratio of 2.11, a quick ratio of 0.31 and a current ratio of 0.85. The stock has a market cap of $24,690.00, a PE ratio of 16.67, a price-to-earnings-growth ratio of 4.36 and a beta of 1.04. Kroger Co has a one year low of $19.69 and a one year high of $31.45.
The firm also recently declared a quarterly dividend, which was paid on Thursday, March 1st. Shareholders of record on Thursday, February 15th were paid a dividend of $0.125 per share. The ex-dividend date was Wednesday, February 14th. This represents a $0.50 dividend on an annualized basis and a yield of 1.79%. Kroger’s dividend payout ratio (DPR) is presently 29.76%.
The Kroger Co (Kroger) manufactures and processes food for sale in its supermarkets. The Company operates supermarkets, multi-department stores, jewelry stores and convenience stores throughout the United States. As of January 28, 2017, it had operated approximately 4,000 owned or leased supermarkets, convenience stores, fine jewelry stores, distribution warehouses and food production plants through divisions, subsidiaries or affiliates.
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