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Investing.com - BMO Capital has reiterated an Outperform rating and $25.00 price target on Albertsons Companies Inc. (NYSE:ACI), a $12.48 billion market cap grocery retailer trading at a P/E ratio of 13.5, ahead of the company’s upcoming earnings report. According to InvestingPro analysis, the stock is currently fairly valued based on its proprietary Fair Value model.
Albertsons is scheduled to report its fiscal first quarter 2026 earnings on Tuesday, July 15, covering the 16-week period ended June 14, 2025. The company has maintained strong fundamentals with $80.39 billion in revenue and a gross margin of 27.58% over the last twelve months.
BMO’s custom data analysis indicates Albertsons’ grocery identical store sales are tracking in line with expectations for the quarter.
The research firm is modeling gross margin percentage conservatively below consensus estimates in Q1, citing Albertsons’ planned price investments, which BMO believes are conservatively budgeted for fiscal 2026 but may weigh on first-half results more than consensus expectations.
BMO expects Albertsons shares may benefit from investors seeking inexpensive, defensive stocks in the second half of 2025.
In other recent news, Albertsons Companies Inc. is preparing to release its first-quarter earnings report, with Citi projecting earnings per share of $0.57, surpassing the consensus estimate of $0.53. RBC Capital expects Albertsons to show identical store sales growth of 2.2%, slightly above the consensus estimate, while projecting a 7% year-over-year decline in adjusted EBITDA to $1.10 billion. BMO Capital Markets recently upgraded Albertsons’ stock rating to Outperform, raising the price target to $25.00, citing a positive outlook on the company’s valuation growth potential. UBS, however, maintained a Neutral rating, noting pricing pressures and challenges in the competitive landscape as key concerns for Albertsons.
Additionally, Albertsons has introduced a new Own Brand offering, Chef’s Counter, featuring pre-seasoned and marinated meats available at its stores. The launch aligns with consumer trends favoring convenient home cooking options, with prices ranging from $4.99 to $12.69. Albertsons has partnered with celebrity chef Antonia Lofaso to promote the brand and plans to expand the Chef’s Counter line in 2026. These developments highlight Albertsons’ efforts to innovate within its Own Brands portfolio and enhance customer experience.
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