Albertsons Companies (ACI – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Edward Kelly from Wells Fargo maintained a Buy rating on the stock and has a $23.00 price target.
Edward Kelly has given his Buy rating due to a combination of factors surrounding Albertsons Companies. The recent announcement of CEO Vivek Sankaran’s retirement and the promotion of COO Susan Morris to the CEO position is a significant development. Despite the loss of Sankaran, who successfully led the company through its public offering and the challenges of the pandemic, Morris is seen as a strong successor with nearly four decades of experience at the company. This leadership transition is expected to be smooth, although it raises questions about the future plans of CFO Sharon Mccollam.
Additionally, Albertsons reaffirmed its 2024 financial guidance, indicating stable growth and resilience against various external challenges. The company’s performance has been bolstered by favorable conditions, and it remains well-positioned despite broader market uncertainties. The management’s strategic plans, including a significant share repurchase authorization, further support the positive outlook. These factors contribute to the Buy rating, as the stock is seen as having an attractive setup with potential for continued outperformance.
In another report released on February 20, Roth MKM also reiterated a Buy rating on the stock with a $23.00 price target.