Oppenheimer Remains a Buy on Kroger Company

By Austin Angelo

Oppenheimer analyst Rupesh Parikh reiterated a Buy rating on Kroger Company (NYSE: KR) today and set a price target of $38. The company’s shares closed yesterday at $30.09.

Parikh said:

“KR will report Q1 results on 6/15. We spent time updating our views into the print. We expect another softish quarter from the chain and still feel comfortable with a Q1 comp decline of 1%. Recent reports from other players point to a still challenging backdrop. We continue to play for a potential second-half turn and are closely watching management’s efforts to reduce costs and enhance the chain’s competitive position against WMT and others. KR is currently ranked as our top grocery pick given the discounted valuation and the potential for better performance later in FY17.”

According to TipRanks.com, Parikh is a 5-star analyst with an average return of 16.9% and a 64.9% success rate. Parikh covers the Services sector, focusing on stocks such as United Natural Foods, Life Time Fitness, and Bob Evans Farms.

Kroger Company has an analyst consensus of Moderate Buy, with a price target consensus of $33.

The company has a one year high of $37.97 and a one year low of $28.29. Currently, Kroger Company has an average volume of 8.79M.

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The Kroger Co. engages in the operation of retail food and drug stores, multi-department stores, jewelry stores, and convenience stores. It also manufactures and processes some of the food for sale in its supermarkets. The Combination Food and Drug Stores are the primary food store format. The Multi Department stores are significantly larger in size than combo stores. In addition to the departments offered at a typical combo store, multi-department stores sell a wide selection of general merchandise items such as apparel, home fashion and furnishings, electronics, automotive products, toys and fine jewelry. The Marketplace Stores are smaller in size than multi-department stores. It offers full-service grocery and pharmacy departments as well as an expanded general merchandise area that includes outdoor living products, electronics, home goods and toys. The Price Impact Warehouse stores offer a ‘no-frills, low cost’ warehouse format and feature everyday low prices plus promotions for a wide selection of grocery and health and beauty care items. The company was founded by Barney Kroger in 1883 and is headquartered in Cincinnati, OH.