Anthony Bonadio, an analyst from Wells Fargo, maintained the Buy rating on Grocery Outlet Holding (GO – Research Report). The associated price target remains the same with $18.00.
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Anthony Bonadio has given his Buy rating due to a combination of factors including the potential for Grocery Outlet Holdings to exceed its Q1 expectations under new management. The company is taking steps to rebuild its credibility and address past execution issues, which could lead to a positive earnings report. Despite some consumer pressure, the environment appears to be improving for value-focused retailers like Grocery Outlet, and Nielsen data shows favorable trends.
Additionally, there are signs of improvement in the company’s margins following previous system-related challenges. The decline in egg prices and the company’s conservative guidance suggest that there is room for margin recovery. The transition to new leadership, along with insider buying, adds confidence in the company’s potential for recovery and growth. Although the stock has seen a recent increase, Bonadio remains optimistic about its long-term prospects as the company works to normalize its growth trajectory.
According to TipRanks, Bonadio is a 4-star analyst with an average return of 18.4% and an 82.05% success rate.
In another report released on May 1, Jefferies also upgraded the stock to a Buy with a $20.00 price target.
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