Koninklijke Ahold Delhaize NV Negative read-across to Ahold-Delhaize from US peers; Further de-rating looming

Research evidence excerpt

Koninklijke Ahold Delhaize NV Negative read-across to Ahold-Delhaize from US peers; Further de-rating looming

J P M O R G A N Europe Equity Research

22 May 2026

Koninklijke Ahold Delhaize NV Underweight

AD.AS, AD NA

Negative read-across to Ahold-Delhaize from US peers; Price (21 May 26):€37.35

Further de-rating looming Price Target (Dec-27):€23.86

The market is getting genuinely worried. Within, we assess the read-across to European Food Retail

ACAhold-Delhaize from recent newsflow, including (i) WMT 1Q earnings & outlook, Borja Olcese

(ii) Kroger price cuts announcement, and (iii) Target update. Broadly, we view the (34-91) 516-1511

stream of newsflow as supportive of our UW thesis on Ahold-Delhaize, with signs borja.olcese@jpmorgan.com

of a weaker market environment and increasing competitive intensity becoming J.P. Morgan Securities plc

rather obvious. US grocers were all under pressure yesterday as a result (WMT Specialist Sales contact details:

-8%, ACI -6%, KR -3%, AD -1.5%).

Olivia Petronilho - Specialist Sales -

European Consumer

We feel reassured on our thesis – we reiterate our UW rating with the stock (44-20) 3493-3709

recently added to the AFL. For Ahold-Delhaize specifically, we flag: 1) olivia.b.petronilho@jpmorgan.com

Management focus on margin and capital return preservation (at the expense of

investment) as eventually compromising the LT outlook of the business; 2)

Differing pricing strategies and narrative at Ahold-Delhaize vs other US grocers,

with Ahold-Delhaize relying on pricing as the main growth lever, 3) An overall less

benign US grocers’ volume and consumer outlook; 4) US margin downside risk

following volume shortfall and high base; 5) Management churn creating an

overhang in the shares.