UPDATE: Hilliard Lyons Raises PT on Kroger on Encouraging 1Q Results

In a report published on Friday, Hilliard Lyons analyst Jeffrey S. Thomison raised the price target on Kroger (NYSE: KR) from $37 to $41 and reiterated a Long-Term Buy rating.

In the report, Hilliard Lyons stated, "Following a strong fiscal 2012, Kroger began its fiscal 2013 in impressive fashion. Sales for the 1Q period ended May 25 rose 3.4% to $30.0 billion, about as expected. Identical food store sales, excluding fuel, improved 3.3%; this was the 38th consecutive quarter of increases in this metric. Gross margin declined slightly (less than we anticipated), while continued operating cost controls and a lower share count led to strong EPS growth."

Kroger closed on Thursday at $32.98.