Gold prices set for weekly drop as dollar surges; Trump tariff action in focus
Citi analyst firm reiterated its Neutral rating and $65.00 price target on Kroger (NYSE:KR) Monday, citing a balanced risk-reward profile for the grocery retailer. According to InvestingPro data, Kroger currently trades at $65.56 with a P/E ratio of 17.7, and analysis suggests the stock is slightly undervalued based on its Fair Value assessment.
The firm estimates Kroger will report first-quarter earnings per share of $1.47, slightly above the FactSet consensus of $1.45, with comparable sales growth of 2.5% compared to consensus expectations of 2.4%. With annual revenue of $147.12 billion and a strong financial health score from InvestingPro, which offers 7 additional key insights about Kroger’s performance, the company maintains a solid market position.
Citi expects Kroger to maintain its fiscal year 2025 guidance given current uncertainties in both the macroeconomic environment and competitive landscape, noting the company holds a relatively favorable position regarding potential tariff impacts.
The analysis highlights competitive concerns as value-oriented retailers like Walmart (NYSE:WMT) and dollar stores report gaining market share among higher-income shoppers, a trend Kroger acknowledged in its previous earnings call when management discussed efforts to showcase more value to consumers.
While Kroger appears well-positioned in the near term regarding tariffs, Citi believes the company will face continued long-term pressure from Walmart’s value proposition and omni-channel capabilities.
In other recent news, Kroger Co has been at the center of several notable developments. The company is set to release its first-quarter earnings report soon, with UBS maintaining a Neutral rating and a $66 price target, highlighting both potential catalysts and challenges. Melius Research upgraded Kroger’s stock rating from Sell to Hold and raised the price target to $70, citing gains from pharmacy closures and robust free cash flow as positive factors. Additionally, BMO Capital Markets reaffirmed its Market Perform rating with a $70 target, following discussions with Kroger’s executive team about market share improvements and e-commerce profitability.
Kroger’s labor relations are also in focus, as drivers at the Forest Park fulfillment center in Georgia have authorized a strike over contract disputes, seeking better wages and benefits. On the employment front, Kroger announced plans to hire 15,000 new associates across various roles, emphasizing competitive pay and career advancement opportunities. The company’s recruitment efforts are part of a broader strategy to enhance customer service and experience.
Kroger is also navigating strategic shifts following the FTC’s decision to block its merger with Albertsons (NYSE:ACI). The company is adjusting its focus on digital and delivery strategies, particularly as it awaits the appointment of a permanent CEO. Meanwhile, Kroger’s renewed partnership with Express Scripts Inc. is expected to gradually benefit its operations, although the impact is not yet reflected in sales forecasts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.