Barclays maintained its Equalweight rating on Kroger (NYSE:KR) stock and held the firm's $68.00 price target intact, framing the selection of Greg Foran as CEO as "an incremental positive" for the grocery operator.
In its note, Barclays framed the leadership transition as the "best case scenario" - an assessment that rests on Foran's prior experience and what the bank sees as meaningful similarities between Kroger's current position and Walmart's historical development at a comparable point in its evolution.
The research house used Walmart (NYSE:WMT) as a benchmarking example throughout its analysis. Barclays highlighted Walmart's recent market strength - trading near its 52-week high with a market capitalization of $1.04 trillion and a one-year total return of roughly 31% - and pointed to InvestingPro data that assigns Walmart a "GOOD" overall financial health score, emphasizing particularly strong price momentum.
Barclays outlined a discrete set of operational and commercial priorities where Kroger could extract value under Foran's leadership. These included:
- Operational improvements across stores, staffing, and supply chain;
- Better use of physical stores to support digital initiatives;
- A more refined pricing strategy; and
- Upgrades to product assortment.
The firm also noted that while Walmart's transformation involved sizeable investments to accelerate growth, similar questions remain for Kroger - specifically about the scale and timing of potential spending required to emulate that path. Barclays said it does not expect major revisions to Kroger's 2026 plans in the near term and that Kroger has reaffirmed its 2025 guidance, but the bank acknowledged uncertainty about "the magnitude of strategic change and potential investments beyond that."
InvestingPro data cited by Barclays shows Walmart trading at an elevated price-to-earnings multiple relative to near-term earnings growth, a signal that market participants are already pricing in significant future performance for Walmart. Barclays' note used that valuation dynamic as context for evaluating Kroger's runway and the potential investor expectations that could follow any aggressive move to accelerate growth.
For investors and analysts seeking granular metrics, InvestingPro provides detailed financial data and research materials for both Kroger and Walmart - including more than 18 ProTips and exclusive Pro Research Reports, according to the firm.
Barclays' commentary arrives alongside a series of recent developments involving Walmart that the bank referenced as part of its comparative framework:
- Oppenheimer raised its price target for Walmart to $140, citing expectations for a strong holiday season and positive momentum;
- Piper Sandler lifted its target to $130, pointing to the strength of Walmart's apparel assortment and competitive pricing; and
- Jefferies reiterated a Buy rating with a $132 price target, noting that Walmart may gain a strategic advantage following PepsiCo's decision to cut snack prices.
Barclays also noted several operational moves by Walmart that underscore the retailer's ongoing expansion and workforce investment: the opening of a new Supercenter in Jacksonville, Florida - a store that created 400 jobs - and an internal promotion program that elevated roughly 3,000 pharmacy technician positions to operations team lead roles with higher wages as part of an expanded healthcare services initiative.
Overall, Barclays frames the Foran hire as constructively directional for Kroger, while preserving measured expectations on near-term strategic change and capital intensity. The bank's stance - maintaining an Equalweight rating and a $68.00 target - signals that it views the leadership shift as a positive development, but not yet sufficient to alter its valuation stance given open questions about future investments and the company's medium-term plans.