What To Do With Kroger's Stock?
Kroger Co (NYSE: KR) reported Thursday its third-quarter results highlighted by a top-and-bottom line beat, but a miss on the same-store sales line. Bank of America's Robert Ohmes maintains a Buy rating on Kroger's stock with a price target lifted from $35 to $37. Kroger benefited in the third quarter from continued cost controls as part of its "Restock execution" while new profit streams helped drive EBIT $100 million above expectations, Ohmes said in a note. Kroger's identical sales could move higher and margins should also improve as headwinds from space optimization initiatives will shift to tailwinds in fiscal 2020, the analyst wrote.