Telsey Advisory Group has upgraded $ACI from “Market Perform” to “Outperform,” setting a target price of $26 — a notable upside from its current trading price around $19.96. This vote of confidence comes on the heels of Albertsons’ decision to refocus its strategy following the termination of its proposed merger with Kroger.
💡 The end of the merger discussions has been a turning point. With that chapter closed, Albertsons is zeroing in on its core operations, and analysts believe this reset will unlock new profitability opportunities. The company has already begun rolling out targeted initiatives aimed at boosting operational execution and delivering shareholder value.
🧾 Financials from the most recent quarter back the upgrade: adjusted EPS came in at $0.46, ahead of the expected $0.40. Revenue hit $18.80 billion, edging past forecasts. Looking ahead to 2025, Albertsons projects same-store sales growth of approximately 1.8%, supported by momentum in its digital, pharmacy, and loyalty programs.
💰 On the dividend front, $ACI pays a quarterly dividend of $0.15 per share, amounting to $0.60 annually. That’s good for a forward yield of about 3.01%. With a conservative payout ratio of just under 27%, there’s plenty of runway for potential dividend increases — a plus for income-focused investors.
📊 With solid fundamentals, renewed strategic focus, and a healthy dividend, Albertsons looks like it’s gearing up for a stronger, more independent chapter — one that’s catching the market’s attention.