Albertsons Companies, Inc. (NYSE:ACI) is one of the top stocks sold by hedge funds. On July 22, UBS upgraded ACI to Buy from Neutral and boosted the price target to $27 from $22.
UBS estimates that Albertsons’ adjusted earnings per share will exceed FactSet’s forecast by approximately 4% for FY2026 and by 8% for FY2027, reflecting a more optimistic earnings outlook from the investment bank.
A fresh produce section in a modern grocery store.
UBS is of the opinion that the recent drop in Albertsons’ stock does not reflect some big growth opportunities, like more customers shopping at the pharmacy and better digital tools, which could help same-store sales grow 2.5% in 2026, a bit more than what most analysts expect.
The report notes that Albertsons may improve profitability by aligning purchasing strategies and leveraging retail media, with operating margins in 2026 projected to exceed consensus by 10 basis points.
UBS added that Albertsons Companies, Inc. (NYSE:ACI) has revised its fiscal year 2025 guidance downward to prioritize strategic investments and to enhance volume growth within its grocery division. The firm noted that this establishes a sustainable baseline, from which the company can manage share repurchases and regularly deliver earnings results that top market expectations.
Albertsons Companies, Inc. (NYSE:ACI) is an American grocery and pharmacy retailer with a wide range of store brands like Safeway, Vons, and Jewel-Osco.
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