BofA Securities Downgrades Grocery Outlet Holding (GO) to Neutral

BofA Securities analyst Robert Ohmes downgraded Grocery Outlet Holding (NASDAQ: GO) from Buy to Neutral with a price target of $17.00 (from $29.00).

The analyst comments "We downgrade GO to Neutral (from Buy) and lower our PO to $17 based on 17-18x our lowered F25E adj EPS (was $29 based on 26-27x) following today’s announcement that CEO RJ Sheedy is resigning and leaving the company effective immediately. GO’s board is now engaging in a search for Sheedy’s replacement, and Eric Lindberg, current Chairman of the Board who previously served as CEO and co-CEO of GO from 2006- 2022, will serve as Interim CEO until a permanent successor is named. Despite a more positive long-term outlook for GO supported by its differentiated model, extreme customer value proposition and long-term growth opportunity, we believe uncertainty could pressure the stock given important unanswered questions."

For an analyst ratings summary and ratings history on Grocery Outlet Holding click here. For more ratings news on Grocery Outlet Holding click here.

Shares of Grocery Outlet Holding closed at $16.61 yesterday.

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