** RBC initiates coverage on European food retailer Ahold Delhaize AD.AS with "sector perform" rating, as investments in its offerings will likely cap near-term margin potential

** Broker says "growth doesn't come for free" and models a broadly flat 4% operating margin for the group between 2026 and 2028 as the firm invests in store brands

** The company has healthy free cash flow generation to support ongoing shareholder returns, RBC says, viewing its cumulative 2025 to 2028 target of €9 billion ($10.28 billion) as achievable

** Brokerage also expects improved sales trajectories in the U.S., driven by stabilized market share and structural growth trends towards healthier eating

($1 = 0.8758 euros)