JPMorgan Expects Kroger (KR) to Reiterate Guidance, Lowers Price Target

The Kroger Co. (NYSE:KR) is included among the 10 Best Value Dividend Stocks to Buy Now According to Warren Buffett.

JPMorgan Expects Kroger (KR) to Reiterate Guidance, Lowers Price Target

On June 11, JPMorgan lowered its price recommendation on The Kroger Co. (NYSE:KR) to $70 from $72 while keeping a Neutral rating on the stock. The change comes ahead of the company’s fiscal first-quarter earnings report on June 18. Analyst Thomas Palmer believes Kroger is likely to reaffirm its full-year guidance.

On May 21, Reuters reported that Kroger is preparing to lower prices on thousands of items as new CEO Greg Foran looks to regain market share from rivals such as Walmart, Costco, and Aldi. Foran, who took over as CEO in February, has been focused on improving efficiency across the business. The company is using savings from tighter sourcing practices, simpler operations, and cost-cutting initiatives to support lower prices and better customer service.

He said Kroger plans to help fund the price reductions by cutting costs in several areas, including importing merchandise directly and making more effective use of technology. The savings will then be reinvested into lower shelf prices for shoppers.

The Kroger Co. (NYSE:KR) is a food and drug retailer that operates supermarkets, multi-department stores, and fulfillment centers throughout the United States.

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