Deutsche Bank Resumes Albertsons (ACI) Coverage with Hold Rating and $18 Target

Core Viewpoint - Albertsons Companies, Inc. is facing challenges in its sales growth and earnings outlook due to external factors such as food disinflation and changes in government benefits, while also experiencing some strengths in its pharmacy business [2][3][5]. Financial Outlook - Albertsons forecasts identical sales growth for the full year to be between 2.2% and 2.5%, slightly lower than its previous guidance of 2.2% to 2.75% [6]. - The company expects adjusted net income to be in the range of $2.08 to $2.16 per Class A share, compared to the earlier range of $2.06 to $2.19 [6]. Market Conditions - Deutsche Bank has resumed coverage of Albertsons with a Hold rating and a price target of $18, indicating a mixed outlook for 2026 influenced by food disinflation and consumer behavior focused on value [2]. - The company noted that disruptions in SNAP benefits during Q3 reduced identical sales by approximately 10 to 20 basis points [4]. Business Performance - Despite challenges, Albertsons' pharmacy business showed strength due to demand for immunizations and GLP-1 therapies, which helped mitigate some negative impacts from SNAP disruptions [5]. - Consumer behavior is shifting towards cheaper products, particularly among low- and middle-income groups, as inflation remains high [5].