Zhitong Finance and Economics APP learned that Kroger (KR.US) stock rose in pre-market trading on Tuesday as BMO Capital Markets upgraded its stock rating from "in line with the market" to "outperform the market". Analyst Kelly Bania and her team at the firm believe that while concerns over price investments in the entire retail industry have caused Kroger's stock price to decline, the company's strong position in the industry will enable it to maintain stable gross margins in fierce competition.

Bania further pointed out that whether or not Kroger's deal with Albertsons Companies (ACI.US) is reached, it will have a positive impact on the company. She expects that if the deal is not completed, the company's earnings per share growth in the first year will be even more significant. In addition, Kroger currently holds $2.30 per share in cash, which can be used for share buybacks to create more value for shareholders in the event that the Albertsons deal is blocked.

BMO Capital Markets also raised its earnings per share expectations for Kroger's fiscal years 2025 and 2026, and set a target stock price of $60, based on a 13x price-to-earnings ratio for the company's earnings per share expectations for fiscal year 2026.

As Kroger is about to release its F1Q earnings report on June 20, Evercore ISI has issued a positive tactical action play (TAP) rating for the company, believing that there is room for the stock price to rise to the high single digits or the mid-$50 level.

Market analysts generally expect Kroger's revenue to reach $45.1 billion, with earnings per share of $1.37. It is worth noting that Kroger has exceeded market expectations for its earnings per share for 16 consecutive quarters, which demonstrates the company's strong performance and market performance.

As of the time of publication, Kroger's stock price rose 2.84% in pre-market trading on Tuesday to reach $52.50, with a trading range of $42.10 to $58.34 over the past 52 weeks, demonstrating its volatility and potential upward momentum.