Analyst Mark Carden from UBS maintained a Buy rating on Albertsons Companies and keeping the price target at $27.00.
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Mark Carden has given his Buy rating due to a combination of factors that suggest potential upside for Albertsons Companies. Despite facing challenges in the food retail sector, ACI is expected to show progress in its second quarter, particularly through productivity initiatives that may alleviate some margin pressures. The company is also seen as potentially benefiting from food inflation and increased spending on groceries as consumers shift from dining out.
Furthermore, Carden believes that the market has been overly pessimistic about ACI’s stock, which has seen a significant pullback in price. This undervaluation, combined with ACI’s strategic investments in pricing and productivity, presents an opportunity for growth. The skepticism surrounding ACI’s ability to generate sales growth from its core grocery operations is also seen as weighing down the stock, but Carden suggests that these concerns may be overstated.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $23.00 price target.