Robert Ohmes, an analyst from Bank of America Securities, reiterated the Hold rating on Albertsons Companies (ACI – Research Report). The associated price target is $24.00.
Robert Ohmes has given his Hold rating due to a combination of factors impacting Albertsons Companies. The company’s fourth-quarter adjusted earnings per share exceeded expectations, and there was notable growth in pharmacy and digital sales. However, the gross margin was pressured by the expansion in these areas, and although productivity improvements helped offset some costs, there were still challenges from business transformation expenses.
Looking ahead, Ohmes anticipates margin pressure to persist due to ongoing investments in digital, value, and customer experience initiatives. While these investments are expected to position Albertsons well for long-term growth, they may limit short-term upside. The company’s focus on enhancing customer lifetime value through various channels supports its long-term outlook, but the near-term financial performance remains constrained, justifying the Hold rating.
Ohmes covers the Consumer Cyclical sector, focusing on stocks such as Costco, O’Reilly Auto, and AutoZone. According to TipRanks, Ohmes has an average return of 9.8% and a 59.48% success rate on recommended stocks.