Analyst Kendall Toscano from Bank of America Securities reiterated a Hold rating on Albertsons Companies and decreased the price target to $22.00 from $24.00.
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Kendall Toscano’s rating is based on several key considerations. Albertsons Companies has shown a strong long-term outlook, particularly with growth in pharmacy and digital sales. However, the company is currently facing short-term margin pressures due to increased costs in these areas, along with higher wages and business transformation expenses.
Despite these challenges, Albertsons is actively working to enhance shareholder value through a significant share repurchase program, which is expected to be accretive to earnings. The company’s efforts to build customer loyalty and lifetime value through multi-channel engagement are promising for long-term growth. Nevertheless, the immediate financial pressures and a lower price objective compared to previous estimates justify a Hold rating at this time.
According to TipRanks, Toscano is an analyst with an average return of -2.5% and a 57.89% success rate.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $18.00 price target.