Citi analyst Paul Lejuez has maintained their bullish stance on ACI stock, giving a Buy rating yesterday.
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.
Paul Lejuez has given his Buy rating due to a combination of factors that suggest a positive outlook for Albertsons Companies. Despite a decline in gross margin in the first quarter, which was more significant than expected, management anticipates improvements as the year progresses. The company did not fully pass on cost inflation to consumers, aligning with its strategy to invest in pricing, which is expected to stabilize grocery units by year-end.
Additionally, Albertsons is positioned to return to its long-term growth algorithm with projected increases in identical sales and EBITDA growth by fiscal year 2026. The company’s shares are trading at a favorable valuation, and management’s discussion highlighted several positive developments, including increased core gross margin, growth in e-commerce and pharmacy sales, and a rise in loyalty program membership. These factors contribute to a favorable risk/reward profile, supporting the Buy rating.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $27.00 price target.