Grocery Outlet price target lowered to $34 from $38 at Deutsche Bank

Deutsche Bank analyst Krisztina Katai lowered the firm’s price target on Grocery Outlet to $34 from $38 and keeps a Buy rating on the shares. While the firm anticipated strong top-line in Q4, Grocery Outlet’s same-store sales of +15.1%+, which was largely impacted by a 10% increase in traffic, surpassed upside estimates, the firm tells investors. While current 2023 same-store sales guidance is +4.5% – +5.5%, Deutsche Bank expects upside as the year progresses. The firm believes Grocery Outlet is well positioned to return to its pre-pandemic gross profit margin range as infrastructure and IT investments become tailwinds.