Goldman Sachs Raises Kroger Price Target to $82 Despite Q1 EPS Miss, 44.85% Upside
KR•Goldman Sachs boosted Kroger’s price target to $82 from $72, implying 44.85% upside despite an 8.43% stock drop after Q1 results. Q1 revenue of $46.12 billion topped estimates, while adjusted EPS of $1.58 narrowly missed forecasts, and company reaffirmed its 2026 EPS goal of $5.10–$5.30 with free cash flow of $2.70–$2.90 billion.
1. Price Target Revision
On June 19, a Goldman Sachs analyst raised Kroger’s price target to $82 from $72, implying a 44.85% potential upside based on the current share level.
2. Q1 Financial Performance
Kroger’s first-quarter revenue of $46.12 billion topped consensus estimates, but adjusted EPS of $1.58 fell just shy of the $1.59 forecast, triggering an 8.43% decline in the stock.
3. Margins Under Pressure
The FIFO gross margin contracted by 9 basis points as transportation expenses climbed and strategic price cuts weighed on overall profitability.
4. Continued 2026 Goals
Despite near-term pressures, the company maintained its full-year 2026 outlook, targeting EPS of $5.10–$5.30 and free cash flow of $2.70–$2.90 billion.
