12:39 PM EST, 12/11/2024 (MT Newswires) -- Albertsons ( ACI ) is likely to face continued pressure on earnings before interest, taxes, depreciation, and amortization after Kroger's (KR) planned $24.6 billion acquisition of the company was blocked by a federal judge, RBC Capital Markets said in a note emailed Wednesday.

The investment firm said it estimates fiscal 2026 adjusted EBITDA of $3.82 billion, below the consensus estimate of $4.08 billion, due to a potentially continued mix shift headwind and Walmart's (WMT) likely price investment.

For fiscal Q3, RBC said Albertsons ( ACI ) could see "slightly positive" core grocery sales, driven by an increase in price and a slight decline in volume. RBC also noted that positive catalysts for the company could include a substantial share repurchase commitment, a tender announcement, and/or a sale/leaseback transaction.

RBC reiterated its outperform rating on Albertsons ( ACI ) but lowered its price target to $21 from $22.

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