Grocery Outlet initiated with a Hold at Loop Capital

Loop Capital initiated coverage of Grocery Outlet with a Hold rating and $17 price target The firm believes Grocery Outlet provides consumers with a compelling value proposition and appreciate the company’s “unique model” of offering entrepreneurs the opportunity to run their own business while simultaneously benefiting from the scale and backing of a large, well-capitalized company. However, it believes Grocery Outlet is currently a “show-me story” given the company’s ongoing systems integration issues and concerns about increased competition.