11:27 AM EDT, 07/22/2025 (MT Newswires) -- Albertsons ( ACI ) is seen benefiting in the next two fiscal years by digital and pharmacy sales growth, offering a "compelling investment opportunity" following a recent stock decline, UBS Securities said Monday in a report.

Improved profitability via centralizing buying and retail media, along with the company's regional advantages versus competitors. also support adjusted earnings per share estimates above consensus by 4% in fiscal 2026 and 8% in fiscal 2027, UBS said.

The retailer lowered its expectations for fiscal 2025, and with this "achievable" base, Albertsons ( ACI ) is expected to resume share buyback and delivery consistent earnings beats and upward guidance revisions, the report said.

Same-store sales growth of 2.5% in both fiscal 2025 and 2026 is forecast on long-term benefits from the pharmacy business with additional gains in market share from rivals, UBS said.

"The company's profitability has contracted in recent years as its pharmacy economics have

normalized and consumers have deconsolidated grocery shopping trips," the report said. "Now, it's got multiple initiatives in place that should help it accelerate its growth off a softer base."

UBS upgraded Albertsons ( ACI ) stock to buy from neutral and boosted its price target to $27 from $22.

Albertsons ( ACI ) shares rose 2.7% in recent Tuesday trading.

Price: 20.59, Change: +0.55, Percent Change: +2.74