Albertsons Companies Inc. (ACI) PT Lowered to $21 at RBC Capital

RBC Capital analyst Steven Shemesh lowered the price target on Albertsons Companies Inc. (NYSE: ACI) to $21.00 (from $23.00) while maintaining a Outperform rating.

The analyst comments "For F2Q, we're raising our ID sales estimate to +2.0% (+1.8% prior / cons. +2.1%), though are lowering our adj. EBITDA estimate to $821M ($844M prior / cons. $826M). More specifically, we've increased our pharmacy growth estimate from +10% to +13%, creating a greater mix shift headwind. These changes are supported by industry conversations, our state-weighted scanner data analysis and peer read-throughs. We expect ACI to reaffirm FY'25 guidance and their expectation for FY'26 to be on-algo, but think investors may continue to tread with caution given concerns over a need for ongoing price investment and low visibility into margin tailwinds ramping (retail media, owned brands, consolidated buying). We lower our PT to $21 ($23 prior) based on ~5.0x our revised FY'26 adj. EBITDA estimate of $4.05B (cons. $3.99B)."

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