Citi analyst Paul Lejuez maintained a Buy rating on Albertsons Companies yesterday and set a price target of $26.00.
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Paul Lejuez has given his Buy rating due to a combination of factors that suggest a positive outlook for Albertsons Companies. He anticipates that the company will exceed earnings expectations for the first quarter, with an estimated EPS of $0.57 compared to the consensus of $0.53. This potential earnings beat is expected to lead to an increase in the company’s full-year 2025 EPS guidance, reflecting management’s strategic investments in pricing.
Additionally, Lejuez notes an encouraging trend in foot traffic, which has shown acceleration in the first quarter, indicating a positive consumer response to Albertsons’ pricing strategies. With shares trading at a relatively low multiple of 5.0 times the estimated 2025 EV/EBITDA, he views the risk/reward profile as favorable. Furthermore, the company has opportunities for self-improvement following the disallowed merger, which could further enhance its performance.
Lejuez covers the Consumer Cyclical sector, focusing on stocks such as Tapestry, Deckers Outdoor, and Dick’s Sporting Goods. According to TipRanks, Lejuez has an average return of 10.0% and a 58.44% success rate on recommended stocks.
In another report released on July 7, Telsey Advisory also maintained a Buy rating on the stock with a $24.00 price target.