Deutsche Bank Raises PT On KR To $28

Deutsche Bank has raised its price target on Kroger KR from $27 to $28 after the company reported a solid Q1. Deutsche Bank maintains a Buy rating on the stock. In the report, Deutsche Bank writes, “Kroger reported a very solid Q1, with EPS beating Consensus by $0.06, driven by stronger-than-expected ID sales, ex-fuel. Food inflation continues to get passed through, with little evidence of any meaningful shifts in buying behavior. Strong growth in traffic and tonnage continues, as KR's value and convenience drive share gains. Buybacks accelerated in Q1 and could drive EPS upside. We believe KR is well-positioned to grow sales and EPS in the current uncertain consumer environment. Valuation remains attractive; Reiterate Buy.” KR closed at $23.99 yesterday.