11:30 AM EDT, 06/20/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target by $4 to $55, 12.1x our FY 25 (Jan.) EPS of $4.55 (up a penny; FY 26 down $0.04 to $4.70) vs. the 14x long-term mean. F1Q adj-EPS of $1.43 (-5% Y/Y) beat by $0.06. Identical sales grew 0.5% vs. 0.2% consensus, driven by inflation and higher traffic, partially offset by negative volumes/units. However, KR notes volumes/units are heading in the right direction. On profits, KR saw gross margin pressure due to headwinds in its pharmacy and fuel businesses, as well as ongoing price investments. In addition, operating expenses saw some pressure due to higher wages and incentive compensation. While KR reiterated its full-year outlook, its outlook for F2Q was slightly underwhelming, as many of these margin headwinds will likely continue for at least another quarter. We believe KR will see stronger identical sales growth as this year progresses given ongoing inflation and improving unit/volume trends. However, we have some concerns about margins based on an intensifying competitive landscape.