Craig-Hallum downgrades Grocery Outlet to Hold, cuts price target to $29

As previously reported, Craig-Hallum analyst Jeremy Hamblin downgraded Grocery Outlet to Hold from Buy with a price target of $29, down from $53. While Q4 results were solid, Grocery Outlet provided disappointing full year 2023 guidance on sales, margins, EPS and unit development, the firm notes. Craig-Hallum continues to be enthusiastic on the long-term prospects for the concept, but believes investors will be frustrated by another year of unit growth well below the company’s typical algorithm, particularly as most retail growth peers have returned to normal growth levels.