Albertsons: JP Morgan downgrades to Overweight with $29 PT from $31.

Albertsons: JP Morgan downgrades to Overweight with $29 PT from $31.

JP Morgan Chase & Co. has downgraded its rating for Albertsons Companies (ACI) from "Buy" to "Overweight" and reduced its price target from $31 to $29, as announced on July 2, 2025. The brokerage maintained its long-term growth expectations for the company, but adjusted its near-term outlook based on recent earnings and market conditions.

Albertsons reported strong first-quarter identical sales growth of 2.8%, surpassing the FactSet consensus estimate of 2.1% growth. The grocery chain has consistently outperformed its identical sales growth algorithm, and UBS Securities expects this trend to continue through 2026 [2]. Despite this positive performance, JP Morgan cited concerns over the company's near-term growth prospects and adjusted its price target accordingly.

The brokerage acknowledged Albertsons' strong fundamentals, including its streak of 15 consecutive quarters of double-digit growth in pharmacy and its unique store footprint among major grocers. However, JP Morgan noted that the company's investment year in 2025 may lead to modest operating margin expansion in 2026 and 2027 [2]. This adjustment in expectations contributed to the downgrade in rating and the reduction in price target.

Investors should closely monitor Albertsons' financial performance and market conditions to make informed investment decisions. The company's ability to capture market share within the pharmacy sector, driven by traditional drug retailers' store closures, remains a key growth driver [2]. Albertsons' improved digital experience and strategic plan also contribute to its long-term growth prospects.

References:
[1] https://www.ainvest.com/news/jp-morgan-raises-dell-technologies-price-target-145-2507/
[2] https://finance.yahoo.com/news/albertsons-consistently-beat-identical-sales-192323973.html