03:10 PM EDT, 06/20/2025 (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 raise our 12-month target by $5 to $75, about 16x our FY 26 (Jan.) EPS of $4.72 (up from $4.67; FY 27 remains at $5.20), versus a 13x long-term average. KR's F1Q identical sales rose 3.2%, the strongest in two years, but center-store sales remain weak, as most of the core grocery growth continues to be driven by fresh items at the perimeter of the store. Also, inflation, which was just under 2% in the quarter, continues to be the primary driver of identical sales. Overall, KR's top-line growth still lags peers, including many big-box stores, club stores, and specialty grocers. However, we are encouraged by recent gross margin trends, driven by private label growth, alternative profit streams, and shrink improvements (e.g., AI-enabled tools to reduce waste). While KR continues to make strides in improving e-commerce unit economics, this business continues to be unprofitable today, unlike Walmart's e-commerce business, which became profitable over this past quarter. We remain at Hold.