The firm said it initiated coverage on the food for sale in supermarkets retailer as it believes Kroger will be able to deliver same-store-sales growth.
"We expect Kroger to benefit from continued solid same-store-sales growth of [around] 3% over the next few years, driven by continued focus on innovation, effective marketing, and a stronger economic backdrop," Citigroup said.
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"The same-store-sales leverage, combined with margin enhancing opportunities such as increased private label mix and natural/organic mix, should drive [around] 10% EPS growth over the next three years," Citigroup added.
Separately, TheStreet Ratings team rates KROGER CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate KROGER CO (KR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."