Analyst Robert Ohmes of Bank of America Securities reiterated a Hold rating on Grocery Outlet Holding (GO – Research Report), boosting the price target to $18.00.
Robert Ohmes has given his Hold rating due to a combination of factors including Grocery Outlet Holding’s strong long-term potential under new leadership and its current near-term challenges. The company has shown positive growth in net sales and gross margin, outperforming market expectations. However, the modest increase in comparable store sales and the decline in average transaction size indicate some pressure in the short term.
Additionally, while Grocery Outlet is focusing on strategic priorities such as store growth in high-awareness markets and improving operational efficiencies, it is also dealing with restructuring costs and system execution gaps. These factors contribute to a cautious outlook, balancing the promising long-term prospects with the uncertainties and headwinds in the near term. Therefore, the Hold rating reflects the belief that while there is potential for future growth, current market conditions and internal challenges may limit immediate stock performance.
According to TipRanks, Ohmes is a 5-star analyst with an average return of 10.1% and a 60.88% success rate. Ohmes covers the Consumer Cyclical sector, focusing on stocks such as O’Reilly Auto, Floor & Decor Holdings, and Driven Brands Holdings.
In another report released today, Roth MKM also reiterated a Hold rating on the stock with a $12.00 price target.