Albertsons: Near-Term Sales Headwinds but Compelling Valuation and Operational Upside Support Buy Rating

BMO Capital analyst Kelly Bania has maintained their bullish stance on ACI stock, giving a Buy rating yesterday.

Kelly Bania has given his Buy rating due to a combination of factors that balance near-term sales headwinds against a compelling longer-term setup. While her analysis of custom Circana data points to softer identical sales growth for Albertsons in F3Q26, particularly in the Pacific region and amid a weak grocery environment, she views some of this pressure as cyclical rather than structural. She notes that recent price investments could help support unit volumes despite industry-wide volume softness and SNAP-related volatility. In addition, early F4Q26 data suggest continued macro pressure, but not enough to offset the broader valuation and strategic positives she sees.

Bania emphasizes that Albertsons’ valuation is notably low versus peers, trading at a discounted EV/EBITDA multiple and offering what she sees as an attractive risk/reward profile as the company moves into an “algorithm year” in fiscal 2027. She expects benefits to build from centralized buying, gross margin improvements, growth in e-commerce and retail media, and ongoing cost savings. Her $25 price target reflects multiple valuation frameworks, including P/E and EV/EBITDA, and incorporates upside from an improving pension position and substantial owned real estate value relative to the company’s market capitalization. Overall, she anticipates that as investors look for inexpensive, defensive names in 2026, Albertsons’ low starting valuation and operational improvements can drive meaningful multiple expansion, supporting her Buy recommendation.

In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $21.00 price target.