J.P. Morgan analyst Thomas Palmer has maintained their neutral stance on KR stock, giving a Hold rating on September 12.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Thomas Palmer’s rating is based on Kroger’s current strategic position and its evolving e-commerce strategy. Kroger has been reassessing its partnership with Ocado, which has been a significant part of its e-commerce operations since 2018. The company is considering shifting towards more in-store fulfillment and third-party delivery services, such as Instacart, to enhance delivery speed and profitability.
Despite these strategic shifts, there is uncertainty surrounding the outcomes of Kroger’s e-commerce review, including potential closures of Customer Fulfillment Centers. While Kroger aims to improve its digital sales and profitability, the company is still in the early stages of achieving these goals. This uncertainty, coupled with the ongoing adjustments in their e-commerce strategy, contributes to the Hold rating, as investors are advised to wait for clearer outcomes before making further investment decisions.
Palmer covers the Consumer Defensive sector, focusing on stocks such as JM Smucker, Kroger Company, and Hormel Foods. According to TipRanks, Palmer has an average return of -1.3% and a 40.35% success rate on recommended stocks.
In another report released on September 12, Morgan Stanley also maintained a Hold rating on the stock with a $76.00 price target.