Kroger (KR) PT Lowered to $66 at Guggenheim

Guggenheim analyst John Heinbockel lowered the price target on Kroger (NYSE: KR) to $66.00 (from $71.00) while maintaining a Buy rating.

The analyst comments "Key Message: The shares, to our surprise, rallied (~3% vs. S&P500 closing up ~85bps on Friday) despite a further moderation in food volumes and full-year comp guidance reduction, largely reflecting already negative sentiment into the print and a solid, fuel price respite-oriented tape for most of the retail sector. A gradual change cadence, for financial and operational reasons, is logical and should ward off the absolute bear case, but food volume weakness, at a point, “competes” with value investments and pressures the P&L. We believe the Cyclospora normalization and self-help will drive improvement over the next 3-4 months, but $4 gas prices are a challenge. We reduce our 2026-2027 EBIT estimates despite a 2Q beat but remain BUY-Rated at 6.2x our 2026E EBITDA—see Exhibit 1—especially with far lower Street expectations. Our PT moves to $66 from $71."

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