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Research Alert: CFRA Keeps Hold Opinion On Shares Of The Kroger Co.
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Research Alert: CFRA Keeps Hold Opinion On Shares Of The Kroger Co.
Sep 11, 2025 1:49 PM

04:25 PM EDT, 09/11/2025 (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 maintain our 12-month target at $75, applying a 14x P/E multiple to our FY 27 (Jan.) EPS estimate of $5.35, up from $5.20. Following strong 1H results, we lift our FY 26 EPS forecast to $4.81 from $4.72, above the company's guidance range of $4.60 to $4.80. The 14x multiple represents a slight premium to the company's long-term forward P/E average of 13x, but remains well below big-box peers, a gap we view as appropriate given KR's slower growth and margin pressure from ongoing price investments. FQ2 results topped expectations, though the updated guidance points to a modest deceleration in identical sales in FQ3, along with continued margin headwinds from mix (with pharmacy sales outpacing grocery) and price investments. Core grocery volumes remain soft, but the trend has improved sequentially. We expect more details next quarter on KR's strategic review of its e-commerce operations, which could offer upside to long-term e-commerce profit estimates. We keep our Hold rating.

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