Analyst Mark Carden from UBS maintained a Buy rating on Albertsons Companies and decreased the price target to $25.00 from $27.00.
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Mark Carden has given his Buy rating due to a combination of factors that highlight Albertsons Companies’ strategic progress and potential for future growth. The company has demonstrated significant advancement in its turnaround efforts, particularly evident in the second quarter, and has taken steps such as announcing a $750 million accelerated share repurchase (ASR) to bolster its share price. These actions are laying the groundwork for achieving their long-term goals by fiscal year 2026 and beyond.
Moreover, Albertsons is making targeted price investments in specific categories and markets, which are expected to yield benefits from centralized buying initiatives in the coming years. The company’s digital segment continues to show robust growth, with eCommerce expanding by 23% in the second quarter, marking its eighth consecutive period of over 20% growth. Despite facing industry pressures like increased price competition and an uneven consumer environment, Albertsons’ strategic initiatives and productivity improvements are positioning it for sustained success, justifying the Buy rating.
Carden covers the Consumer Defensive sector, focusing on stocks such as Albertsons Companies, United Natural Foods, and The Chefs’ Warehouse. According to TipRanks, Carden has an average return of 13.6% and a 73.91% success rate on recommended stocks.
In another report released yesterday, Telsey Advisory also maintained a Buy rating on the stock with a $24.00 price target.