JPMorgan Lowers Kroger Price Target to $70, Maintains Neutral

JPMorgan lowered its price target on The Kroger Co. (NYSE:KR) to $70 from $72, while keeping a Neutral rating on the stock. The revision comes ahead of the company's fiscal first-quarter earnings announcement.

Rating Change

• Previous Rating: Neutral, price target $72.
• Current Rating: Neutral, price target $70.
• Change: -2.8% in price target.

Analyst Rationale

The analyst expects Kroger to reiterate its previous guidance when reporting Q1 results, which may not provide a catalyst for the stock. Additionally, the current valuation does not offer an attractive entry point, justifying the Neutral stance.

Context

Kroger is listed among the 10 Best Value Dividend Stocks to Buy Now According to Warren Buffett, per an Insider Monkey report. However, the stock has underperformed recently, declining about 5% over the past month.

Conclusion

JPMorgan's adjustment reflects a cautious near-term view on Kroger, awaiting Q1 results for clearer signals. Investors may prefer to wait for actual guidance before making decisions.