Overview
Evercore ISI has increased its price objective for Kroger Co. to $84.00 from $77.00 and maintained an Outperform rating after reports indicated that Kroger will appoint Greg Foran, the former president of Walmart U.S., as its next CEO. The research firm highlighted Foran's ability to restore and improve store operations during his time at Walmart U.S. in explaining the change.
Valuation and rationale
Evercore applied a 16x calendar 2026 price-to-earnings multiple to arrive at the new $84.00 target. The firm said this multiple reflects a 30% discount to the S&P. Separately, Evercore described Kroger as its preferred choice for value-focused food retail investors, pointing to company-specific drivers for comparable sales and margins while noting that the stock is trading at an approximately 40% discount to the S&P.
Market reaction
Kroger shares, quoted near $67.50, have shown noticeable upward momentum, gaining about 7.04% over the prior week, based on InvestingPro data. Evercore attributed the adjustment in its price target in part to the addition of what it called an "exciting CEO who can help shape the business for the medium to long term."
Corporate developments and shareholder returns
Kroger announced a quarterly dividend of $0.35 per share, continuing a streak of dividend increases that the company has maintained since 2006. The dividend is scheduled to be paid on March 1, 2026, to shareholders of record as of February 13, 2026.
Operations and portfolio moves
The grocer has expanded its delivery footprint through partnerships with Uber Eats and Postmates, enabling on-demand and same-day grocery delivery from nearly 2,700 stores nationwide. The expanded service covers product assortments across Kroger retail banners, including Ralphs and Fred Meyer.
On the leadership front, Kroger elevated Victor Smith to Senior Vice President of Retail Divisions, a move the company framed as recognition of his tenure and experience within the organization. In addition, Kroger completed the sale of Vitacost.com to iHerb as part of an effort to streamline operations by divesting non-core assets.
Context of reporting
Reports of the CEO selection were attributed to The Wall Street Journal and other news outlets, a development Evercore ISI referenced in its note updating the price target and reiterating its Outperform rating.
Conclusion
Evercore ISI's move to raise its price target reflects an updated valuation that incorporates leadership change, continued shareholder returns and operational initiatives such as delivery expansion and portfolio simplification. The firm retains a constructive stance on the stock relative to peers in food retail, citing valuation gaps versus the broader market.