Albertsons: Resilient Earnings, Disciplined Pricing, and Attractive Valuation Support Buy Rating

Albertsons Companies, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Paul Lejuez from Citi maintained a Buy rating on the stock and has a $26.00 price target.

Paul Lejuez has given his Buy rating due to a combination of factors tied to Albertsons’ financial performance and valuation. He notes that the latest quarter modestly exceeded earnings expectations, with comparable sales in line, and management’s updated full-year guidance still consistent with a steady earnings profile. Although the company trimmed its identical sales outlook amid a difficult operating backdrop and ongoing volume pressure, he believes the medium-term potential to return to its targeted growth algorithm—moderate sales growth with faster EBIT expansion—remains intact.

Lejuez also highlights that management’s selective pricing actions and ongoing investments in value are aimed at protecting market share without triggering destructive promotional behavior. While changes in drug pricing and the Inflation Reduction Act create some top-line headwinds, he expects them to be neutral to profits, with potential upside from increased pharmacy traffic as medications become more affordable. With his earnings estimates unchanged and a target price of $26 implying a low mid‑single‑digit EV/EBITDA multiple and a substantial prospective share price gain, he concludes that the risk/reward profile is attractive enough to support a Buy rating despite the challenging environment.

Lejuez covers the Consumer Cyclical sector, focusing on stocks such as TJX Companies, Ross Stores, and Under Armour. According to TipRanks, Lejuez has an average return of 11.1% and a 61.19% success rate on recommended stocks.

In another report released yesterday, Roth MKM also reiterated a Buy rating on the stock with a $24.30 price target.