Albertsons (ACI): Evaluating Valuation Following Recent Decline in Share Price
Written by Emily J. Thompson, Senior Investment Analyst
Source: Yahoo Finance
Updated: Oct 12 20250mins
Recent Stock Performance: Albertsons Companies (ACI) shares have decreased by approximately 9% over the past month, currently priced at $17.12, raising questions about whether the stock is undervalued or if the market has already accounted for its growth potential.
Long-Term Value and Risks: Despite a 4.1% decline in 1-year total shareholder return, long-term investors have seen gains. The company's modernization efforts through technology investments may enhance margins, but challenges such as sluggish e-commerce profitability and rising labor costs could hinder future growth.
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Analyst Views on ACI
Wall Street analysts forecast ACI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ACI is 23.58 USD with a low forecast of 20.00 USD and a high forecast of 29.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
9 Buy
4 Hold
0 Sell
Moderate Buy
Current: 17.660
Low
20.00
Averages
23.58
High
29.00
Current: 17.660
Low
20.00
Averages
23.58
High
29.00
Evercore ISI
In Line
downgrade
$22 -> $21
2025-11-11
Reason
Evercore ISI
Price Target
$22 -> $21
2025-11-11
downgrade
In Line
Reason
Evercore ISI lowered the firm's price target on Albertsons to $21 from $22 and keeps an In Line rating on the shares.
Tigress Financial
Ivan Feinseth
Buy
maintain
$28 -> $29
2025-10-20
Reason
Tigress Financial
Ivan Feinseth
Price Target
$28 -> $29
2025-10-20
maintain
Buy
Reason
Tigress Financial analyst Ivan Feinseth raised the firm's price target on Albertsons to $29 from $28 and keeps a Buy rating on the shares. The firm says the company is transforming from a traditional grocery operator into a "data-driven, digitally integrated food and wellness platform." This is reshaping Albertsons' revenue mix and deepening customer engagement across grocery, pharmacy, and digital touchpoints, the analyst tells investors in a research note.
UBS
Buy
downgrade
$27 -> $25
2025-10-15
Reason
UBS
Price Target
$27 -> $25
2025-10-15
downgrade
Buy
Reason
UBS lowered the firm's price target on Albertsons to $25 from $27 and keeps a Buy rating on the shares. Albertsons showed progress with its turnaround in Q2, and the announcement of a $750M accelerated share repurchase helped support the company's share price gains on the day and sets the foundation to reach its longer-term algorithm in FY26 and beyond, the analyst tells investors in a research note.
BofA
Robert Ohmes
Neutral
downgrade
$24 -> $22
2025-10-15
Reason
BofA
Robert Ohmes
Price Target
$24 -> $22
2025-10-15
downgrade
Neutral
Reason
BofA analyst Robert Ohmes lowered the firm's price target on Albertsons to $22 from $24 and keeps a Neutral rating on the shares. The firm raised its FY26 adjusted EPS view by 3c to $2.13, in line with updated guidance after fiscal Q2 earnings came in ahead of forecasts, but lowers its price target based on a lower multiple applied to its 5c higher FY27 adjusted EPS forecast given lower peer and market multiples.
See All Ratings
About ACI
Albertsons Companies, Inc. is a food and drug retailer in the United States. The Company is engaged in the operation of food and drug retail stores that offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel and other items and services in its stores or through digital channels. It operates approximately 2,257 retail stores with 1,720 in-store pharmacies, 405 associated fuel centers, 22 dedicated distribution centers and 19 manufacturing facilities. The Company operates stores across 35 states and the District of Columbia under 22 banners, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, ACME, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci's Food Lovers Market. Its own brands include Signature SELECT, Open Nature, Lucerne, Waterfront BISTRO, Signature Reserve and Value Corner, among others.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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