Bank of America Securities analyst Robert Ohmes has reiterated their neutral stance on ACI stock, giving a Hold rating on July 7.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Robert Ohmes’s rating is based on a combination of factors that reflect both the strengths and challenges faced by Albertsons Companies. The company reported stronger-than-expected identical sales growth, particularly in pharmacy and digital sectors. Despite this, the adjusted earnings per share slightly missed Bank of America’s expectations, indicating some pressure on profitability.
Ohmes also noted that while Albertsons is making significant investments in digital platforms and customer experience, these efforts are contributing to margin pressures, particularly in the pharmacy and digital areas. Although these investments are expected to position the company well for long-term growth, the near-term outlook remains constrained by these margin challenges. As a result, the Hold rating reflects a cautious stance, balancing the company’s strategic investments against the current financial pressures.
In another report released on July 7, Morgan Stanley also maintained a Hold rating on the stock with a $20.00 price target.
ACI’s price has also changed slightly for the past six months – from $20.420 to $21.010, which is a 2.89% increase.