Argus is positive about setting up Kroger (NYSE: South Korea) in 2023, despite inflation and macroeconomic headwinds.
Walmart (WMT) and Target (TGT) Despite Grocery Momentum, Analyst Chris Graja and Team Kroger’s outlook (Korean) is underpinned by affordable private labels, strong customer analytics and a growing interest in fresh produce. Grocery operators also see the convenience of online ordering and the benefits of curbside pickup at virtually all stores.
“We believe Kroger is taking the right steps to protect and grow its market share. The company has a history of using technology to showcase the right products and offer the right promotions. Kroger believes it can compete effectively against Amazon, but competition remains high as Walmart battles Amazon and Target and others invest more in their digital businesses. prize.”
Notably, Kroger (KR) shares have risen 3% over the past 12 months, despite falling 7% following the Oct. 14 announcement of the acquisition of Albertsons. Graja noted that Kroger (KR) shares are trading at 11 times his 2024 forecast for the company. However, if Kroger (KR) were to trade at 16 times his EPS estimate of $4.08 for his 24th year in Argus, the stock would be worth about $65.
Kroger (KR) shares rise 0.29% Down to $44.71 in premarket action on Monday.
Read why Seeking Alpha author The Value Investor is bullish on Kroger.