Does Albertsons Companies (ACI) Have the Potential to Rally 36.33% as Wall Street Analysts Expect?

Core Viewpoint - Albertsons Companies, Inc. (ACI) shows potential for significant upside, with a mean price target of $23.53 indicating a 36.3% increase from its current trading price of $17.26 [1] Price Targets and Analyst Estimates - The mean estimate consists of 15 short-term price targets with a standard deviation of $2.72, suggesting variability in analyst predictions [2] - The lowest estimate is $19.00, indicating a 10.1% increase, while the highest estimate is $29.00, reflecting a potential surge of 68% [2] - A low standard deviation indicates strong agreement among analysts regarding the stock's price direction [9] Earnings Estimates and Analyst Agreement - Analysts have shown increasing optimism about ACI's earnings prospects, with a positive trend in earnings estimate revisions [11] - Over the last 30 days, one estimate has increased, leading to a 0.5% rise in the Zacks Consensus Estimate [12] - ACI holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - While price targets are commonly referenced, they can mislead investors, as empirical research indicates they rarely predict actual stock price movements [7][10] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8]