With food prices soaring, and U.S. consumer earnings up 6% year-over-year, BofA thinks Kroger can pass on these higher costs to the consumer
With food prices soaring, and U.S. consumer earnings up 6% year-over-year, BofA thinks Kroger can pass on these higher costs to the consumer
Bank Of America analyst(s) recently released a note that grocery chain Kroger can thrive in a high inflationary food envionment. The Investment Bank noted that Kroger has the ability to pass on higher costs to customers.
Bank Of America sees the food inflationary environment to stay until 2023, which positions Kroger to be set for the environment of higher costs passed onto its customers. Bank Of America raised its price targert from $61 to $75, a near 23% increase in the price target.
The Investment Bank also noted that they see U.S. consumers accepting the bulk of price increases given U.S. earnings are up 6% year over year.