Erste Group Bank Has Negative View of Kroger FY2028 Earnings

Key Points

• Erste Group Bank slightly lowered its FY2028 EPS estimate for Kroger to $5.62 from $5.63 and kept a Hold rating on the stock.
• The estimate is still above the current consensus forecast of $5.24 per share, suggesting analysts remain somewhat more optimistic than the broader market on long-term earnings.
• Recent analyst activity has been mixed overall, with some firms cutting ratings or price targets while others raised targets or reiterated Buy views, leaving Kroger with a consensus rating of Moderate Buy.

The Kroger Co. (NYSE:KR - Free Report) - Analysts at Erste Group Bank reduced their FY2028 earnings per share estimates for Kroger in a report released on Friday, June 5th. Erste Group Bank analyst H. Engel now anticipates that the company will post earnings of $5.62 per share for the year, down from their prior estimate of $5.63. Erste Group Bank has a "Hold" rating on the stock. The consensus estimate for Kroger's current full-year earnings is $5.24 per share.

Other equities research analysts also recently issued research reports about the company. Wells Fargo & Company downgraded Kroger from an "overweight" rating to an "equal weight" rating and reduced their target price for the company from $70.00 to $68.00 in a research report on Wednesday, February 25th. Weiss Ratings restated a "hold (c)" rating on shares of Kroger in a research report on Friday, March 27th. Telsey Advisory Group lifted their target price on Kroger from $80.00 to $82.00 and gave the company an "outperform" rating in a research report on Thursday, March 5th. Jefferies Financial Group reiterated a "buy" rating and issued a $80.00 price objective on shares of Kroger in a report on Wednesday, June 3rd. Finally, Citigroup boosted their price objective on Kroger from $68.00 to $71.00 and gave the company a "neutral" rating in a report on Monday, March 9th. Nine research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $74.67.

Kroger Price Performance

NYSE:KR opened at $64.19 on Friday. Kroger has a 52 week low of $58.60 and a 52 week high of $76.58. The company has a quick ratio of 0.42, a current ratio of 0.80 and a debt-to-equity ratio of 2.66. The company has a market capitalization of $39.32 billion, a P/E ratio of 41.95, a P/E/G ratio of 1.82 and a beta of 0.42. The stock's fifty day moving average is $66.80 and its two-hundred day moving average is $66.55.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in KR. Brighton Jones LLC boosted its position in shares of Kroger by 27.3% during the 4th quarter. Brighton Jones LLC now owns 15,733 shares of the company's stock worth $962,000 after acquiring an additional 3,373 shares in the last quarter. Woodline Partners LP boosted its position in shares of Kroger by 40.7% in the 1st quarter. Woodline Partners LP now owns 56,243 shares of the company's stock valued at $3,807,000 after purchasing an additional 16,270 shares during the period. Sivia Capital Partners LLC purchased a new stake in Kroger during the 2nd quarter valued at approximately $201,000. NewEdge Advisors LLC raised its stake in Kroger by 11.5% during the 2nd quarter. NewEdge Advisors LLC now owns 97,288 shares of the company's stock valued at $6,978,000 after acquiring an additional 10,051 shares during the last quarter. Finally, Nebula Research & Development LLC purchased a new stake in Kroger during the 2nd quarter valued at approximately $1,840,000. 80.93% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger is being highlighted as a defensive stock to own amid geopolitical uncertainty, and one analyst reiterated a Buy rating even after trimming the price target, which can support investor sentiment. Why The Kroger Co. (KR) is a Defensive Stock to Buy Amid Geopolitical Tensions
• Positive Sentiment: Kroger is expanding promotional activity and traffic-driving initiatives, including lower prices on thousands of items, fuel-point deals, and limited-time private-label products, which may help defend market share and customer loyalty. Is Kroger’s (KR) Digital Shelf Label Push Reframing Its Technology-Led Customer Loyalty Strategy?
• Neutral Sentiment: JPMorgan lowered its price target to $70 from $72 but kept a neutral rating, suggesting limited near-term upside rather than a clearly bearish view. Benzinga report on JPMorgan price target cut
• Neutral Sentiment: Erste Group slightly reduced FY2028 EPS estimates to $5.62 from $5.63 and maintained a Hold rating, reflecting a modestly softer outlook rather than a major change in fundamentals. MarketBeat ticker page
• Negative Sentiment: Several recent pieces point to pressure on earnings expectations and a more cautious setup ahead of the next report, with analysts saying Kroger may not have the right ingredients for a likely earnings beat. Kroger (KR) Earnings Expected to Grow: Should You Buy?
• Negative Sentiment: The company also faces a settlement over inaccurate calorie information, adding a small legal and reputational overhang. Kroger reaches $1.25 million settlement for inaccurate calorie information

Kroger Company Profile

The Kroger Co NYSE: KR is one of the largest supermarket operators in the United States, offering a wide range of retail grocery and related services. Founded in Cincinnati in 1883 by Bernard Kroger, the company operates a portfolio of supermarket and multi-department store banners and provides customers with fresh foods, packaged groceries, deli and bakery items, meat and seafood, produce, and prepared foods. Kroger's stores commonly include pharmacy services and fuel centers, positioning the company as a broad-based neighborhood retail destination for everyday needs.

In addition to traditional in-store retailing, Kroger manufactures and distributes a variety of private-label brands and operates its own food production and supply-chain facilities.

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