02:40 PM EDT, 07/15/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our 12-month target at $22, based on 10.7x our FY 26 (Feb.) EPS estimate of $2.06 (trimmed from $2.07; FY 27 lowered to $2.20 from $2.24). This valuation aligns with ACI's long-term average forward P/E but reflects a meaningful discount to KR's current 16x forward P/E. In our view, the quarter was a low-quality beat, with key negatives including continued weakness in grocery unit/volume sales and greater-than-expected gross margin compression, driven by mix shifts and increased investment in price and promotions. On the positive side, pharmacy and digital sales showed strong growth, and e-commerce margins improved (though remain negative). This fiscal year is expected to be a reinvestment year, with ACI focusing on initiatives across e-commerce, retail media, customer value proposition, and supply chain. We expect investor focus to soon shift to FY 27, which has potential for stronger EPS and EBITDA growth. We maintain a Hold on margin concerns.