Deutsche Bank Resumes Albertsons (ACI) Coverage with Hold Rating and $18 Target

Albertsons Companies, Inc. (NYSE:ACI) is included among the 15 Dividend Growth Stocks with the Highest Growth Rates.

On January 8, Deutsche Bank expert Krisztina Katai resumed sum of Albertsons Companies, Inc. (NYSE:ACI) with a Hold standing and an $18 terms target. Deutsche said it is restarting sum crossed broadline and nutrient retailers, and expects 2026 to beryllium different “mixed year.” In the firm’s view, the setup volition apt beryllium shaped by nutrient disinflation, reduced authorities benefits, and consumers continuing to absorption heavy connected value. While that backdrop could marque things tougher adjacent for antiaircraft names similar nutrient retail, the expert added that “there are tailwinds connected the horizon,” including a meaningful stimulus expected successful the archetypal fractional of 2026.

A time earlier, connected January 7, Albertsons issued its outlook and struck a cautious tone. The institution forecast softer yearly identical income maturation and adjusted earnings, pointing to disruptions successful SNAP benefits during the 3rd 4th and unit gathering successful its pharmacy concern owed to Medicare cause terms renegotiations.

Albertsons said a abbreviated lapse successful nutrient stamp benefits successful November, caused by the US authorities shutdown, reduced identical income by astir 10 to 20 ground points successful Q3. The institution besides noted that little Medicare cause prices, which went into effect successful January, are expected to measurement connected fiscal 2025 identical income by different 16 to 18 ground points.

That said, pharmacy was not each negative. Albertsons said its pharmacy concern saw spot during the 4th from request tied to immunizations, GLP-1 therapies, and halfway prescriptions. That helped offset immoderate of the weakness linked to the SNAP disruption. The institution besides acknowledged that user behaviour remains strained. Albertsons said galore US shoppers, particularly successful low- and middle-income groups, person shifted toward cheaper products and are being much selective with spending arsenic ostentation stays elevated and uncertainty lingers.

For the afloat year, Albertsons expects identical income maturation of 2.2% to 2.5%, which is somewhat little astatine the midpoint than its anterior outlook of 2.2% to 2.75%. The institution besides guided to adjusted nett income of $2.08 to $2.16 per Class A share, compared with its earlier scope of $2.06 to $2.19.

Albertsons Companies, Inc. (NYSE:ACI) is simply a large US nutrient and cause retailer, operating stores that merchantability groceries, wide merchandise, wellness and quality products, pharmacy services, fuel, and different essentials some in-store and done integer channels.

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