Analyst Corey Tarlowe from Jefferies maintained a Buy rating on Grocery Outlet Holding (GO – Research Report) and increased the price target to $20.00 from $18.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Corey Tarlowe has given his Buy rating due to a combination of factors that highlight Grocery Outlet Holding’s potential for strong performance. The company’s defensive nature positions it well to outperform during uncertain economic times. Improvements in technology and ordering systems are expected to enhance same-store sales and adjusted EBITDA margins, providing a positive outlook for the company’s financial performance.
Furthermore, Tarlowe notes that the company’s traffic trends are better than anticipated, driven by the value it offers compared to its peers. The management team is addressing operational issues, which could lead to improved results and potentially higher earnings per share. Additionally, the retailer’s business model and sourcing flexibility minimize the impact of tariffs, further supporting its growth prospects.