Wall Street’s view on Kroger
Kroger (KR) is covered by 25 Wall Street analysts who have jointly rated the stock a 2.2 on a scale of 1 (strong buy) to 5 (sell). The company has a better rating than Whole Foods Market (WFM) and SuperValu (SVU), which are rated 3.2 and 2.6, respectively. Sprouts Farmers Market (SFM) is also rated 2.2.
Of the 25 analysts that rated Kroger, 56% recommended a “buy,” 36% recommended a “hold,” and only 8% gave a “sell” rating. In comparison, 57% analysts recommend buying Sprouts while none of them recommend selling it. SuperValu has no “sell” ratings yet.
Investors looking for exposure in Kroger through ETFs can choose to invest in the Guggenheim S&P 500 Equal Weight Consumer Staples ETF (RHS). KR has a weight of ~2.5% in RHS.
Analyst actions after Kroger’s fiscal 4Q17 results
While there have not been any rating changes on Kroger stock after its fiscal 4Q17 results, several analysts have revised their target prices on the company.
Telsey Advisory Group lowered its target price on Kroger to $38 from $40.
Goldman Sachs also cut the price target from $39 to $35 and removed the company from its “conviction buy” list. Deutsche Bank lowered the target price to $35 from $39.
The average target price for the company is $35.36, which indicates an upside of around 15% over the next 12 months. The company is currently trading at $30.67, ~28% below its 52-week high price.
SuperValu and Sprouts, with upsides of 36% and 25%, respectively, are currently more attractive when compared to Kroger.
Please read the final article in this series for a closer look at Kroger’s stock market performance and its current valuations.