Evercore ISI analysts reaffirmed an Outperform rating on Kroger (NYSE:KR) with a $75 price target, citing potential for an 8-10% upside in the stock ahead of its fourth-quarter earnings release on March 6.
Kroger continues to demonstrate resilience in a challenging consumer environment, executing effectively and benefiting from a modestly favorable industry backdrop. While skepticism remains among some investors, the company is expected to gain further recognition for its defensive growth characteristics.
Analysts forecast a solid fourth-quarter performance, with earnings per share projected at $1.14, slightly surpassing the Street’s expectation of $1.11. Identical sales growth is also anticipated to slightly exceed the consensus 2% estimate. Additionally, the reinstatement of Express Scripts (ESI) is expected to provide a meaningful boost to sales momentum.
Looking forward, Kroger’s full-year guidance could range from $4.75 to $4.95 per share, aligning with its historical 8-11% total shareholder return (TSR) framework. Growth catalysts include sticky inflation, increased consumer value focus, and demand for healthier eating options. With sustained EBITDA expansion and share repurchases complementing its sales trajectory, Evercore analysts believe that Kroger appears well-positioned to continue delivering strong financial performance in 2025 and beyond.