In a report released yesterday, Robert Ohmes from Bank of America Securities maintained a Hold rating on Grocery Outlet Holding, with a price target of $18.00.
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Robert Ohmes has given his Hold rating due to a combination of factors impacting Grocery Outlet Holding Corp. While the company’s valuation is currently lower than its historical levels, and there is a positive long-term outlook supported by a unique business model and strong customer value proposition, near-term challenges are causing concern. These challenges include potential pressure on same-store sales and expected margin compression in the upcoming quarter.
Additionally, the company is undergoing strategic changes with a new CEO and a reevaluation of priorities, including slower store growth and workforce reductions. Although there is potential for recovery in comparable sales and margins, the timeline for this turnaround remains uncertain. The new management team is working to address these issues, but the uncertainty around the recovery timeline and ongoing earnings pressure has led to the Hold rating.
In another report released on July 30, Craig-Hallum also reiterated a Hold rating on the stock with a $14.00 price target.
GO’s price has also changed moderately for the past six months – from $16.190 to $13.170, which is a -18.65% drop .