Jefferies Lowers Kroger PT From $28.50 To $26; Lowers EPS Outlook

Jefferies is lowering its EPS outlook for 4Q11, FY11 and FY12 to $0.43, $1.74 and $1.98 from $0.51, $1.83 and $2.18, respectively. “We still believe Kroger's KR 4Q will be pretty good despite the huge variance seen with the company's guidance and its fairly bleak assessment of the consumer,” Jefferies writes. “Even so, much of this seems more related to a turn in the middle-class consumer, and perhaps even the food-at-home industry.” Kroger closed Friday at $21.11.