The upgrade

Today, Bernstein upgraded Kroger (KR) from “market perform” to “outperform,” and it also raised its 12-month price target to $33, which represents a potential upside of 37.1% from its stock price of $24.07 on May 20.

As CNBC reported, Bernstein has stated that Kroger’s weak same-store sales growth and margin in its recent quarter have made investors anxious. However, Bernstein believes Kroger is well positioned to deliver on its long-term Restock Kroger initiatives, positioning itself as a serious omnichannel player.

Why Did Bernstein Upgrade Kroger?

Other analysts’ recommendations

Since Kroger posted its fourth-quarter earnings on March 7, several analysts have lowered their price targets:

  • UBS from $30 to $27
  • Jefferies from $34 to $29
  • Morgan Stanley from $27 to $26
  • J.P. Morgan from $30 to $25
  • Credit Suisse from $33 to $30

Of the total 26 analysts who follow Kroger, 38.5% have a “buy” rating while 50.0% say “hold” and 11.5% have a “sell” rating. On average, analysts have given Kroger a 12-month price target of $28.39, which represents upside potential of 18.0% from its stock price of $24.07.

Peer comparisons

Of the total 32 analysts covering Walmart (WMT), 38.5% have a “buy” rating while 50% say “hold” and 11.5% say “sell.” Wall Street has given Walmart a 12-month price target of $110.32, which implies an upside potential of 8.7% from its price target of $101.52.

Of the 26 analysts following Target (TGT), 38.5% say “buy” while 61.5% have a “hold” rating. On average, analysts have a 12-month price target of $86.60 for TGT, which represents a potential upside of 20.2% from its stock price of $72.08.

And of the 29 analysts who follow Costco (COST), 58.6% have a “buy” rating while 41.4% have a “hold” rating. On average, Wall Street has given Costco a 12-month price target of $250.58, which implies a 12-month price target of 0.7% from its stock price of $248.9.

Latest articles

Apple (AAPL) investors have had a roller coaster week. Apple stock has lost just under 2% in a week, ending on August 23, 2019.

Competition taking a toll on Netflix as its share of US subscription video streaming market keep falling as rivals gain ground.

Crude oil production continues to rise, and oil prices remain at $50. Despite that, US energy stocks aren’t getting investors’ interest.

Apple stock fell 4.6% as the US-China trade war intensified today. China warned of tariffs on more US goods, followed by Trump's tweeted response.

In response to new tariffs from China and President Trump's tweets, the market tanked to session lows on Friday. The DJIA nosedived more than 600 points.

Coverage on Cresco Labs has increased from seven analysts in July to nine in August. Six analysts favor a “strong buy,” and three recommend a “buy.”