Analysts See Albertsons (ACI) Unlocking Value via Growth and Buybacks

Albertsons Companies Inc. (NYSE:ACI) is one of the deep value stocks to buy according to analysts. Albertsons’ stock was upgraded to Buy from Neutral by the UBS analyst Mark Carden on July 22, who also lifted his price target to $27 from $22. He noted that the recent decline in the stock price overlooks the company’s growth opportunities, particularly in pharmacy cross-shopping and digital channels.

Carden also expects Albertsons to support shareholder returns through buybacks while continuing to deliver quarterly results that exceed expectations, along with upward revisions to guidance. In his view, these factors should help the stock re-rate and narrow the valuation discount relative to peer Kroger.

This view is consistent with earlier commentary from BMO Capital’s Kelly Bania, who in mid-July reaffirmed her Buy rating with an unchanged price target of $25. While margin pressures have weighed on the stock, she pointed out that management expects EBITDA growth to return by 2026 after several years of decline. Bania also highlighted improving grocery unit trends, stronger momentum in e-commerce, and a relatively low valuation as supportive factors.

These perspectives suggest that Albertsons’ strategic investments and operational improvements, along with its discounted multiple, position the stock as an attractive defensive play within the sector.

Albertsons Companies Inc. (NYSE:ACI) is one of the largest food and drug retailers in the United States, with several well-known banners including Albertsons, Safeway, Vons, Pavilions, and Randalls.

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Disclosure: None. This article is originally published at Insider Monkey.