Kroger operates retail food and drug stores, multi-department stores, jewelry stores, and convenience stores throughout the U.S.
Barclays maintained its "equal weight" rating and a price target of $75 on the stock.
The competitive environment for retailers remains rational, so Kroger has been able to invest in areas like training and store labor rather than price and promotion, according to the analyst note.
"Sales of natural and organic products remain strong and margins are healthy, and we believe that healthy eating remains a growing mainstream trend," Barclays analysts said.
Kroger reported first quarter earnings results yesterday with revenue of $33.05 billion, or $1.25 earnings per share. For more on its earnings, click here
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, notable return on equity, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."