UBS Raises Kroger Price Target After Strong Q1 Earnings

The Kroger Co. (NYSE:KR) ranks among the best FMCG stocks to buy. On June 23, UBS maintained its Neutral rating on The Kroger Co. (NYSE:KR) and raised its price target for the grocery store chain’s stock from $66 to $74 on June 23. The price target raise comes after Kroger’s first-quarter earnings, which UBS reported included a number of encouraging indicators, including the fifth consecutive quarter of sequential growth in identical store sales minus fuel.

With particular enhancements in shrink control, e-commerce, and its pharmacy sector, UBS emphasized Kroger’s efficiency in managing profitability. The firm credited these improvements in part to Kroger’s focus on its primary operations now that merger-related distractions are “in the rear-view mirror.”

The firm saw a “greater sense of urgency” at The Kroger Co. (NYSE:KR) to boost market share and competitiveness. The grocery store chain’s performance seems to be improving as a result of this newfound focus.

The Kroger Co. (NYSE:KR) is an American retailer with over 2,700 supermarkets and multi-department stores in 35 states across the US.

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