BMO Capital Downgrades Albertsons Companies Inc. (ACI) to Market Perform

BMO Capital analyst Kelly Bania downgraded Albertsons Companies Inc. (NYSE: ACI) from Outperform to Market Perform with a price target of $12.00 (from $23.00).

The analyst comments: “Despite the lowest valuation in our coverage, we are downgrading ACI to Market Perform as our thesis based on EBITDA stabilization is proving elusive. With grocery competition set to increase from key supermarket peer, we fear that ACI is not moving fast enough on cost reductions to fund better pricing leaving us to worry that future profitability remains at risk. We lower our F27E and F28E EBITDA to $3.6 and $3.5 billion, respectively and cut our TP to $12, ~4-5x EV/EBITDA and 7x P/E or 9x P/E using KR accounting.”

For an analyst ratings summary and ratings history on Albertsons Companies Inc. click here. For more ratings news on Albertsons Companies Inc. click here.

Shares of Albertsons Companies Inc. closed at $11.44 yesterday.

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