Telsey Advisory lowered the firm’s price target on Albertsons (ACI) to $21 from $27.25 and keeps a Market Perform rating on the shares following the announcement of the termination of its merger agreement with Kroger (KR). The company provided a long-term financial framework, with expectations long-term growth will be supported by improvement in its value proposition, gains from investments, acceleration of omnichannel revenues, growth of Albertsons Media Collective, transformation of supply chain, and value creation through optimization, the analyst tells investors. While these actions should drive profitable growth, the firm remains concerned about the increased promotional environment across retail and the need to reinvest in the business following two years of focus on the merger.
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