Sam Boughedda

Investing.com – Kroger Company (NYSE 🙂 shares are gaining Friday after BofA analyst Robert Ohmes upgraded the company’s shares from Neutral to Buy, increasing the price target to $75 from $61.

According to a research paper, an analyst indicated that grocery inflation must remain elevated for the at least first half 2023. This could lead to “significant earnings upside” for Kroger. 

Ohmes believes that US consumers will accept most price hikes, as US hourly earnings are up 6%.

An analyst said that wide-based inflation was driving consumers to shops with more choice as they dilute their consumption. Kroger may see an increase in its market share.

Kroger shares rose by 3.29% Friday morning. This is in addition to Thursday’s gains.