Jefferies Initiates Coverage on Kroger at "Hold" (KR)

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 DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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