Grocery Outlet Holding (GO) PT Lowered to $22 at Roth/MKM
Roth/MKM analyst Bill Kirk lowered the price target on Grocery Outlet Holding (NASDAQ: GO) to $22.00 (from $27.00) while maintaining a Neutral rating.
THe analyst comments "GO reported comp sales of +3.9% (cons. +2.3%), but profitability fell short. Similarly, forward guidance was raised for comp sales, but lowered on adjusted EBITDA/EPS. System disruption began as -150bps to comp and -50bps to gross margin (3Q), but has morphed into a negligible comp impact and -210bps to gross margin (1Q). The remaining issues (1Q and partially 2Q) are shrink and unexpected product costs. Should those cleanly resolve, upside becomes intriguing. For now, we remain Neutral and lower our PT to $22 (from $27)."