Albertsons' Valuation Depends On Its Potential Merger With Kroger, Says Analyst
Portfolio Pulse from Shivani Kumaresan
Telsey Advisory Group analyst Joseph Feldman reiterated a Market Perform rating on Albertsons Companies, Inc. (NYSE:ACI) with an unchanged price target of $27.25. The analyst maintained 2Q23 sales and profit projections but lowered 2H23 estimates due to slower consumer spending trends and faster-than-anticipated disinflation. The analyst believes Albertsons' valuation is dependent on its potential merger with Kroger Company (NYSE:KR).
October 10, 2023 | 7:19 pm
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Albertsons' valuation is dependent on its potential merger with Kroger, according to an analyst. The company's 2H23 estimates have been lowered due to slower consumer spending trends.
The analyst's comments about Albertsons' valuation being dependent on its potential merger with Kroger could create uncertainty among investors, potentially impacting the stock's performance. The lowered 2H23 estimates could also negatively affect investor sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Costco's comments about moderating inflation were noted by the analyst.
The analyst's mention of Costco's comments about moderating inflation could potentially impact investor sentiment, but the direct impact on the stock is unclear.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Kroger's potential merger with Albertsons could impact its valuation, according to an analyst.
The potential merger with Albertsons could create uncertainty among Kroger's investors, potentially impacting the stock's performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Walmart's comments about increased usage of weight-loss drugs were noted by the analyst.
The analyst's mention of Walmart's comments about increased usage of weight-loss drugs could potentially impact investor sentiment, but the direct impact on the stock is unclear.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50