UPDATE: J.P. Morgan Raises PT on Kroger to $25 (KR)

J.P. Morgan is out with its report on Kroger KR, raising its price target from $24 to $25.

In a note to clients, J.P. Morgan writes, "On the margin front, Kroger is successfully passing through the low-single digit inflation to its customer, and expense leverage opportunities remain intact suggesting its flat margin forecast could be conservative. All told, at only 12.1x our 2011E of $1.90, we continue to think the risk/reward is favorable and we're raising our December 2011 Price Target to $25 from $24 accordingly."

J.P. Morgan maintains Overweight on KR.

At the time of posting, shares of KR were trading pre-market at $23.16, up 0.61% from Thursday's close.