5 hours ago 2

Morgan Stanley Lifts Kroger (KR) PT, Maintains Equal Weight Rating

Habib Ur Rehman

Mon, Jul 7, 2025, 8:04 AM 2 min read

The Kroger Co. (NYSE:KR) is one of the Best Stagflation Stocks to Buy Now. On June 23, Morgan Stanley raised its price target on Kroger to $76 on June 23, basically signaling cautious optimism about the grocer’s path forward. While the firm held its Equalweight rating, it noted that Kroger’s revenue trajectory is gaining pace, and recent market share wins point to real momentum.

The bank sees earnings growth accelerating through the rest of 2025, potentially outpacing the modest 1.3% Kroger logged in Q1. Add in a 20-year dividend track record and a 1.78% yield, and the picture becomes one of quiet, consistent resilience, especially in a shaky macro environment where tariffs and consumer uncertainty are back on the radar.

Morgan Stanley’s scenario modeling suggests room for upside, with a bull case price of $105. The bear case lands at $45, with the firm seeing current positioning slightly tilted in investors’ favor. Modest tailwinds like food inflation and improvements in Kroger’s pharmacy segment could help, but it’s a balancing act, with competition and demand softness lurking in the backdrop.

Kroger (NYSE:KR) is one of America’s largest traditional grocery chains. It operates over 2,700 supermarkets, fuel stations, pharmacies, and digital services across 35 states. Its private-label penetration (40%+), strong loyalty programs, and expanding e-commerce presence make it a defensive anchor for consumer portfolios.

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