Analyst Kendall Toscano from Bank of America Securities reiterated a Hold rating on Albertsons Companies and decreased the price target to $22.00 from $24.00.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Kendall Toscano’s rating is based on several key considerations. Albertsons Companies has shown a strong long-term outlook, particularly with growth in pharmacy and digital sales. However, the company is currently facing short-term margin pressures due to increased costs in these areas, along with higher wages and business transformation expenses.
Despite these challenges, Albertsons is actively working to enhance shareholder value through a significant share repurchase program, which is expected to be accretive to earnings. The company’s efforts to build customer loyalty and lifetime value through multi-channel engagement are promising for long-term growth. Nevertheless, the immediate financial pressures and a lower price objective compared to previous estimates justify a Hold rating at this time.
According to TipRanks, Toscano is an analyst with an average return of -2.5% and a 57.89% success rate.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $18.00 price target.