Kroger Price Targets Slashed to $58 and $61 on Flat Q2 Outlook
KR•Wells Fargo cut Kroger’s price target to $58 from $68 and Barclays trimmed its target to $61, both warning of a choppy outlook and flat Q2 earnings growth. Kroger reported Q1 sales of $46.1 billion vs $45.5 billion expected, missed EPS at $1.58, and reaffirmed 2026 EPS guidance of $5.20–$5.40.
1. Analysts Slash Price Targets
Wells Fargo lowered its target to $58 from $68 with an Equal Weight rating, warning of a choppy path and challenging stock performance, while Barclays cut its target to $61 from $68 and maintained a neutral stance in response to flat Q2 earnings expectations.
2. Q1 Results and Margins
Kroger posted Q1 sales of $46.1 billion versus $45.5 billion expected but missed adjusted EPS at $1.58, and saw gross margin dip to 22.7% from 23% year over year due to higher fuel sales, transport costs and strategic price investments.
3. Outlook and Guidance
Management projects Q2 identical sales excluding fuel roughly in line with Q1, flat adjusted EPS year over year, and reaffirmed full-year guidance for 1.0–2.0% identical sales growth excluding fuel and $5.20–$5.40 in adjusted EPS, noting rising inflationary pressures and pharmacy headwinds.
