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Investing.com - Kepler Cheuvreux upgraded Koninklijke Ahold Delhaize NV (AS:AD) stock rating from Hold to Buy on Thursday, raising its price target to EUR41.00 from EUR38.50 following the company’s strong third-quarter performance. The stock, currently trading at $41.38, has delivered impressive returns of 30.49% year-to-date. According to InvestingPro analysis, Ahold Delhaize appears undervalued based on its Fair Value assessment.
The Dutch-Belgian grocery retailer delivered resilient sales growth and solid operating margins across both its U.S. and European operations during the quarter. Underlying operating income exceeded analyst consensus by 7.7%, driven primarily by stronger performance in the U.S. market, partly supported by one-off factors. The company’s annual revenue stands at $107.28 billion with a healthy gross profit margin of 26.49%.
Ahold Delhaize maintained its full-year 2025 guidance, including targets for free cash flow and underlying operating margin. The company operates supermarket chains including Stop & Shop, Giant, Food Lion, and Hannaford in the United States, and Albert Heijn in the Netherlands.
Kepler Cheuvreux had previously downgraded the stock on May 8, 2025, with a EUR37.5 price target. The research firm has now fine-tuned its model primarily to reflect adverse foreign exchange impacts.
The upgrade reflects Kepler’s belief that Ahold Delhaize possesses strong structural growth drivers and could benefit from a valuation re-rating similar to what competitor Tesco has experienced.
In other recent news, Jefferies has upgraded Koninklijke Ahold Delhaize NV’s stock from Hold to Buy. This decision comes with an increased price target, now set at EUR42.00, up from EUR39.50. Jefferies cites that the market concerns surrounding the company have been overplayed, leading to an undervaluation of the stock. The firm points to factors such as U.S. dollar fluctuations, price competition worries, and Amazon’s renewed focus on its food business as contributing to these concerns. Despite these issues, Jefferies believes the fears are excessive, resulting in an unjustified devaluation of the stock to a 7.8% free cash yield. These recent developments suggest a more optimistic outlook from Jefferies for Ahold Delhaize. The upgrade reflects confidence in the company’s ability to navigate these challenges. Investors may find this information useful when considering their positions in Ahold Delhaize.
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