Kroger price target raised to $50 from $46 at Roth MKM

Roth MKM raised the firm’s price target on Kroger to $50 from $46 and keeps a Neutral rating on the shares after its Q4 results. The company’s Identical Sales turned negative in Q3 and Q4 but should return positive by Q2 of FY24, though while private brands, alternative revenue streams, and some supply chain savings will continue, Kroger’s core retailing business is exiting a period of over-earning, the analyst tells investors in a research note. The company’s FY24 guidance also features EPS contraction, yet two assumptions may still carry risk, including that fuel operating profit will be flat and the assumption that unit volumes will be positive, the firm added.