Analysts say Kroger’s 2Q results strong, company focuses on customers
By APWednesday, September 15, 2010
Analysts: Kroger’s 2nd-quarter results strong
NEW YORK — Kroger Co. posted strong second-quarter results this week, with net income up 2.8 percent and revenues at the nation’s largest traditional grocer up 6 percent. Still, analysts were mixed about prospects going forward.
THE OPINION: Barclays Capital analyst Meredith Adler said the company’s results are the strongest of its peers but the stock won’t move higher because of the economic environment. She cut her price target to $24 from $26 and maintained her “1-Overweight” rating.
“We think there is a risk that the stock will have trouble moving up meaningfully until the external environment shows signs of improvement,” she told clients Wednesday.
Janney Capital Markets analyst Jonathan Feeney kept his price target of $28 and “Buy” rating, saying the company has “now improved profits for two quarters while modestly outperforming the industry.”
THE STOCK: Kroger shares rose 21 cents to $21.47 on Wednesday, in the middle of its 52-week range of $19.08 to $24.80.
