Deutsche Bank Reports Solid Q4 For Kroger.

In a report published by Deutsche Bank, Kroger KR saw a solid Q4 but will have a more cautious 2011 despite the momentum.

Deutsche Bank said that Kroger posted solid Q4 results, with both ID sales, ex-fuel, and EPS, ex-items, beating Consensus. “Food inflation is getting passed through, and the competitive environment is rational. KR continues to gain share, underscoring key advantages like its scale, strong local market shares, and a deep private brand portfolio. KR may have an opportunity to beat its modest '11 EPS outlook given strong ID sales momentum, the improving macro environment & share repurchases. Given attractive valuation & EPS upside potential, we reiterate Buy.”

Kroger closed yesterday at $23.02.