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On Wednesday, Evercore ISI analyst Michael Montani reaffirmed an Outperform rating and a $75.00 price target on Kroger shares (NYSE:KR). The endorsement comes as Kroger announced the appointment of David Kennerley as its new Chief Financial Officer. Kennerley, who previously served as Vice President and CFO of PepsiCo (NASDAQ:PEP) Europe, will be succeeding the former SVP & CFO Gary Millerchip, with Todd Foley, the Interim CFO, set to retire following a first-quarter transition period.
Montani highlighted that Kennerley’s selection is the result of a thorough search process, with Foley having provided stable leadership during the transition. Although Kroger did not provide an update on its fourth-quarter results, which are due on March 6, Montani expressed confidence in the company’s core business and anticipates potential earnings above Wall Street’s expectations for calendar years 2025 and 2026. The company’s strong track record is evident in its consistent performance, with InvestingPro data showing 19 consecutive years of dividend increases and a current dividend yield of 1.97%.
The analyst pointed to several factors that could act as catalysts for Kroger’s stock performance, including surpassing Street estimates and accelerating comparable store sales. The renewed partnership with Express Scripts Inc. (ESI) and expected inflation rates are also seen as positive drivers. Kennerley faces the challenge of working with Kroger’s unionized workforce, further developing the company’s multi-channel business model, and competing with Walmart (NYSE:WMT)’s robust in-store and technology-driven execution.
Evercore ISI’s analysis suggests that Kroger is on course to achieve its targeted 8-11% total shareholder return, with comparable store sales expected to meet the company’s long-term goals and modest margin expansion anticipated. The firm notes that Kroger’s shares are currently trading at a significant discount compared to Walmart and the S&P 500 based on calendar year 2026 earnings per share, coupled with an approximately 2% dividend yield, presenting an attractive opportunity for value-oriented investors.
In other recent news, Kroger Co . announced the appointment of David Kennerley as the new Senior Vice President and Chief Financial Officer, a role he will formally assume on April 3. Kennerley brings approximately 25 years of experience from PepsiCo. In other developments, Kroger Health, the company’s healthcare division, has partnered with Express Scripts to expand prescription medication and health service access to Express Scripts customers.
Citi analysts have reinstated coverage on Kroger with a Neutral rating and a price target of $61.00 after a hiatus due to a potential merger with Albertsons Companies (NYSE:ACI) Inc., which has since been blocked. In contrast, JPMorgan updated its financial model for Kroger, resulting in a revised price target of $71 and adjusted earnings per share estimates for the coming years.
Recently, Kroger also announced the redemption of multiple series of senior notes totaling $4.7 billion, following the termination of a proposed merger with Albertsons Companies, Inc. These developments are part of the recent news surrounding Kroger Co.
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