UPDATE: Jefferies Initiates Coverage on The Kroger Co. on Positive Outlook, Fair Valuation

In a report published Tuesday, Jefferies analyst Mark Wiltamuth initiated coverage on The Kroger Co. (NYSE: KR) with a Hold rating and $45.00 price target.

In the report, Jefferies noted, “Kroger is on a roll, striking the right balance between planned gross margin sacrifice and sales growth. The company is consistently out-comping and outearning its conventional grocery peers. As valuation has now recovered to near pre-recession levels, we view KR as fairly valued and expect KR shares to grow 10-12% with earnings growth.”

The Kroger Co. closed on Monday at $39.90.