Grocery Outlet Holding (GO) PT Raised to $50 at Berenberg

Berenberg analyst Brian McNamara raised the price target on Grocery Outlet Holding (NASDAQ: GO) to $50.00 (from $48.00) while maintaining a Buy rating.

The analyst commented, "Reiterate Buy rating and raise price target to $50 (from $48). GO stock has underperformed since its Q3 earnings report November 10, up 0.6% (vs. S&P500 +4.8%), due primarily to concerns around a faster-than-expected mean reversion of favorable business trends in 2021 (e.g., Q4 comps guided +MSD% vs. +14.3% ytd). We do not share these concerns. Being a secondary and tertiary grocer to the vast majority of its customers, we believe it is only natural that GO's trends would normalize faster than conventional grocer peers. Furthermore, we believe store unit growth is as important, if not more important, to the long-term bull case. We believe GO has years of robust growth ahead, with store growth leading the way; our confidence is strengthened by the proprietary store expansion work included in this note."

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