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BMO Reaffirms “Outperform” on Albertsons (ACI) with $25 Price Target

Albertsons Companies, Inc. (NYSE:ACI) is one of the best alternative meat stocks to invest in according to analysts. On July 9, BMO Capital reaffirmed its “Outperform” rating and a $25 price target for Albertsons. This reiteration comes ahead of the company’s fiscal first-quarter 2026 earnings report, scheduled for July 15, 2025.

BMO had previously upgraded Albertsons’ stock rating from “Market Perform” to “Outperform” on May 7, 2025, also raising the price target from $19 to $25. The firm justified this earlier upgrade with a positive outlook on the company’s potential for valuation growth, stable profit margins, and a decreased likelihood of aggressive pricing strategies.

During the current rating decision, BMO stated that it expects Albertsons’ shares to benefit in the second half of 2025 from investors seeking inexpensive, defensive stocks. Additionally, BMO’s custom data analysis indicates that Albertsons’ grocery identical store sales are tracking in line with expectations for Q1 FY2026. The firm is modeling the gross margin percentage conservatively below consensus estimates for the quarter. This is attributed to Albertsons’ planned price investments, which BMO believes are conservatively budgeted for fiscal 2026 but may weigh on first-half results more than consensus expectations.

Albertsons Companies, Inc. (NYSE: ACI) is one of the largest food and drug retailers in the US. The retailer operates more than 2,200 stores under banners like Albertsons, Safeway, Vons, and O Organics. Albertsons is pushing into the alternative meat sector through its private-label brands, Open Nature and O Organics. Open Nature was relaunched in March 2023 with 12 new plant-based offerings, while the O Organics line expanded in 2019 to include USDA‑certified organic, plant-based frozen meals and protein bowls.

While we acknowledge the potential of Albertsons Companies, Inc. (NYSE:ACI) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ACI and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.

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