Grocery Outlet downgraded to Hold from Buy at Jefferies

Jefferies downgraded Grocery Outlet (GO) to Hold from Buy with a price target of $7, down from $18. The firm says its prior optimism around a “cleaner reset and faster execution recovery has faded.” Grocery’s results show ongoing execution missteps, a second restructuring in 12 months, and heavier reliance on promotions to drive volumes at the expense of margins and profit growth, the analyst tells investors in a research note. Jefferies the company’s recovery timing and earnings durability is “increasingly uncertain.”