Guggenheim Starts Grocery Outlet Holding (GO) at Neutral

Guggenheim analyst John Heinbockel initiates coverage on Grocery Outlet Holding (NASDAQ: GO) with a Neutral rating.

The analyst comments "Bottom line, we believe GO is well positioned for 5-10 years of 10%+ sales and adjusted EBITDA growth as its unconventional operating model and superior value proposition drive secular share gains in the large and fragmented consumables retail market. To us, this lengthy and highly-visible growth runway merits a premium valuation. However, with the shares having risen 55% since the IPO, they now trade at 19.6x 2020E EBITDA, one of the higher valuations in growth retail."

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 $33.81 yesterday.

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