Albertsons Companies (NYSE:ACI) Price Target Lowered to $20.00 at UBS Group

Key Points

• UBS lowered its price target on Albertsons to $20 (from $23) while keeping a "buy" rating, implying roughly a 20% upside from current levels.
• Q4 beat and stronger capital returns: Albertsons reported $0.48 EPS vs. $0.43 expected, raised FY2026 adjusted EPS guidance to $2.22–$2.32, increased the quarterly dividend and reset a $2B buyback program.
• Near-term headwinds: Revenue missed estimates, management guided annual sales below some Street forecasts, and a roughly $774M opioid settlement widened GAAP losses—factors behind multiple analyst target cuts and a consensus "Hold" (avg. target ~$21.31).

Albertsons Companies (NYSE:ACI - Get Free Report) had its price objective decreased by research analysts at UBS Group from $23.00 to $20.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. UBS Group's target price points to a potential upside of 20.37% from the stock's current price.

A number of other research analysts have also issued reports on ACI. Citigroup reduced their price objective on Albertsons Companies from $26.00 to $22.00 and set a "buy" rating for the company in a research report on Wednesday. Weiss Ratings reiterated a "hold (c-)" rating on shares of Albertsons Companies in a research note on Tuesday, January 27th. Telsey Advisory Group lowered their price target on shares of Albertsons Companies from $24.00 to $22.00 and set an "outperform" rating for the company in a research report on Thursday, January 8th. Evercore cut their price objective on shares of Albertsons Companies from $21.00 to $20.00 and set an "in-line" rating on the stock in a research report on Tuesday, December 23rd. Finally, Morgan Stanley reissued an "underweight" rating and set a $14.00 target price (down from $20.00) on shares of Albertsons Companies in a research note on Thursday, January 15th. Ten investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Albertsons Companies currently has a consensus rating of "Hold" and an average target price of $21.31.

Albertsons Companies Stock Performance

Shares of NYSE:ACI traded up $0.28 during trading on Wednesday, reaching $16.62. 10,522,968 shares of the company's stock traded hands, compared to its average volume of 7,486,461. The stock has a market capitalization of $8.54 billion, a P/E ratio of 10.72, a price-to-earnings-growth ratio of 0.48 and a beta of 0.45. Albertsons Companies has a 12 month low of $15.80 and a 12 month high of $22.78. The company has a 50 day moving average of $17.54 and a 200-day moving average of $17.59. The company has a debt-to-equity ratio of 3.36, a current ratio of 0.91 and a quick ratio of 0.20.

Albertsons Companies (NYSE:ACI - Get Free Report) last issued its earnings results on Tuesday, April 14th. The company reported $0.48 EPS for the quarter, beating analysts' consensus estimates of $0.43 by $0.05. The company had revenue of $20.25 billion during the quarter, compared to the consensus estimate of $20.49 billion. Albertsons Companies had a return on equity of 38.00% and a net margin of 1.06%.Albertsons Companies's quarterly revenue was up 7.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.46 earnings per share. Albertsons Companies has set its FY 2026 guidance at 2.220-2.320 EPS. On average, equities analysts expect that Albertsons Companies will post 2.14 EPS for the current year.

Hedge Funds Weigh In On Albertsons Companies

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Corient Private Wealth LLC raised its position in shares of Albertsons Companies by 30.9% during the 4th quarter. Corient Private Wealth LLC now owns 144,129 shares of the company's stock worth $2,475,000 after buying an additional 33,996 shares in the last quarter. DGS Capital Management LLC increased its position in shares of Albertsons Companies by 54.1% during the 4th quarter. DGS Capital Management LLC now owns 35,404 shares of the company's stock valued at $608,000 after purchasing an additional 12,434 shares during the period. River Road Asset Management LLC bought a new stake in shares of Albertsons Companies in the 4th quarter worth $6,366,000. Mercer Global Advisors Inc. ADV raised its stake in shares of Albertsons Companies by 7.4% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 14,709 shares of the company's stock worth $253,000 after buying an additional 1,012 shares in the last quarter. Finally, XTX Topco Ltd lifted its holdings in shares of Albertsons Companies by 2,062.7% in the fourth quarter. XTX Topco Ltd now owns 790,089 shares of the company's stock valued at $13,566,000 after buying an additional 753,557 shares during the period. Institutional investors own 71.35% of the company's stock.

Albertsons Companies News Roundup

Here are the key news stories impacting Albertsons Companies this week:

• Positive Sentiment: Q4 earnings beat and operational momentum — ACI reported $0.48 EPS vs. $0.43 consensus, with management citing digital and loyalty gains that supported profits despite pharmacy headwinds. Albertsons Beats on Q4 Earnings Despite IRA Pharmacy Headwinds
• Positive Sentiment: Raised FY26 adjusted EPS guidance and bigger shareholder returns — Albertsons set FY2026 adjusted EPS of $2.22–$2.32 (above Street estimates) and increased the quarterly dividend by 13% while resetting a $2B buyback program, supporting income-oriented investor interest. Albertsons forecasts $2.22-$2.32 adjusted EPS in fiscal 2026 while raising dividend 13% and resetting $2B buyback
• Neutral Sentiment: Analyst stance still constructive despite a lower target — JPMorgan trimmed its price target to $22 from $23 but retained an overweight rating, signaling continued analyst confidence in upside from current levels. Benzinga
• Neutral Sentiment: Unusual options flow — Call buying picked up meaningfully, suggesting some traders are positioning for additional upside after the print (elevated call volume vs. typical).
• Negative Sentiment: Large opioid settlement increases near-term charges — Albertsons reached a ~$774M settlement framework to resolve opioid claims; the charge widened Q4 GAAP loss and adds a meaningful one-time liability that investors must absorb. Albertsons Reaches $774 Million Opioid Settlement
• Negative Sentiment: Top-line pressure and sales guidance caveat — While EPS beat, revenue missed expectations and management signaled annual sales will be below some Street forecasts amid intense promotional competition, which could limit margin expansion. Grocer Albertsons forecasts annual sales below estimates

Albertsons Companies Company Profile

Albertsons Companies, Inc NYSE: ACI is one of the largest food and drug retailers in the United States, operating a diversified portfolio of grocery store banners. Founded in 1939 by Joe Albertson in Boise, Idaho, the company has grown through both organic expansion and strategic acquisitions. Its core business activities encompass the sale of fresh produce, meat, bakery items, deli offerings, pharmacy services, and general merchandise. The company's retail operations are complemented by an in-house private-label program, featuring brands such as O Organics, Open Nature, and Lucerne, which cater to a range of customer preferences and price points.

Throughout its history, Albertsons Companies has pursued growth via mergers and partnerships.

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