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Investing.com - JPMorgan has assumed coverage of Albertsons Companies Inc (NYSE:ACI) with an Overweight rating and a price target of $27.00, down from a previous target of $29.00. The $10.89 billion market cap retailer currently trades at $19.43, with analyst targets ranging from $19 to $29. According to InvestingPro analysis, the stock appears fairly valued based on its proprietary Fair Value model.
The investment bank sees opportunity for Albertsons to improve its sales and earnings growth following what it describes as "a couple of years of distraction" while the Kroger (NYSE:KR) acquisition was pending.
JPMorgan believes food retailers are currently well-positioned, noting that food inflation is likely to persist, partly driven by tariff-related pricing increases.
The firm points out that customers are shifting toward higher-margin areas of stores, specifically perishables and dairy, while food-at-home consumption tends to be more insulated during periods of economic uncertainty.
JPMorgan suggests that an eventual sales and earnings growth re-acceleration is not reflected in Albertsons’ share price, as the stock trades at "a sizable discount to other food retailers on both P/E and EV/EBITDA."
In other recent news, Albertsons Companies reported its Q1 2025 earnings, with adjusted earnings per share (EPS) reaching $0.55, aligning with analysts’ expectations. The company’s revenue slightly exceeded forecasts, totaling $24.88 billion compared to the anticipated $24.68 billion. In addition to these financial results, Albertsons held its annual meeting of stockholders, where all nominated directors were elected to serve until the 2026 annual meeting. This includes directors such as Sharon Allen and Frank Bruno, among others.
Furthermore, UBS upgraded Albertsons from Neutral to Buy, citing growth in its pharmacy and digital sectors. UBS also raised its price target for Albertsons to $27.00, noting that its adjusted EPS estimates are 4% above consensus for fiscal year 2026 and 8% higher for fiscal year 2027. These developments provide a comprehensive view of the company’s recent activities and financial performance.
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