Jefferies Initiates Coverage on Kroger at “Hold” (KR)
Jefferies reported on Tuesday that it has started coverage on The Kroger Co. (KR).
The firm has initiated coverage on KR with a “Hold” rating and $45 price target. This price target suggests an 11% upside from the stock’s current price of $39.90.
Analyst Mark Wiltamuth noted: “Kroger is on a roll, striking the right balance between planned gross margin sacrifice and sales growth.”
“The company is consistently out-comping and out-earning its conventional grocery peers. As valuation has now recovered to near pre-recession levels, we view KR as fairly valued and expect KR shares to grow 10-12% with earnings growth.”
Kroger shares were mostly flat during pre-market trading Tuesday. The stock is up 53% YTD.
The Bottom Line
Shares of The Kroger Co. (KR) have a 1.65% yield based on Monday’s closing price of $39.90.
The Kroger Co. (KR) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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