Citi Research downgraded Albertsons Companies to Hold from Buy and cut its price target by 35% to $11, citing a meaningfully lowered full-year outlook and little visible progress on fixes after the failed Kroger merger. Analyst Paul Lejuez reduced the target from $17 based on updated estimates and a higher required rate of return, reflecting increased risk of market share loss in the grocery segment. The downgrade follows Albertsons’ fiscal first-quarter results and a 21% cut to its fiscal 2026 EPS guidance midpoint, now $1.75 to $1.85, with management warning that gross margin pressure will persist through the year. Citi also lowered its own fiscal 2026 EPS estimate to $1.81 from $2.12 on a comparable sales outlook of negative 0.7%.
Albertsons CompaniesCiti downgraded Albertsons to Hold and slashed price target to $11, citing lowered outlook and EPS guidance cut.
Kroger Company