Grocery Outlet Holding (GO – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Robert Ohmes from Bank of America Securities reiterated a Buy rating on the stock and has a $33.00 price target.
Robert Ohmes has given his Buy rating due to a combination of factors including Grocery Outlet Holding Corp’s better-than-expected fourth-quarter earnings and consistent customer traffic growth. Ohmes notes that the company’s adjusted earnings per share for the quarter exceeded analysts’ predictions. Moreover, the company’s revenue growth was bolstered by strong same-store sales and the opening of new stores, despite some headwinds from system integrations. The company’s gross margin remained stable year-over-year, thanks to a robust flow of deals that helped to counterbalance system disruptions.
Additionally, Ohmes’s rating is influenced by the strategic expansion of Grocery Outlet into the Southeast through the acquisition of United Grocery Outlet, which is expected to contribute to sales and adjusted EBITDA. He also anticipates that the company’s investment in technology, supply chain enhancements, and marketing efforts will position it for long-term success. Despite near-term disruptions expected to affect earnings marginally, Ohmes foresees a strong traffic trend continuing, which supports the company’s compelling value proposition and its potential for significant long-term growth and expansion within the US market.
Ohmes covers the Consumer Cyclical sector, focusing on stocks such as Costco, Yeti Holdings, and Home Depot. According to TipRanks, Ohmes has an average return of 7.5% and a 57.28% success rate on recommended stocks.
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Grocery Outlet Holding (GO) Company Description:
Grocery Outlet Holding Corp. engages in the operation of retail stores. It offers name-brand consumables and fresh products through a network of independently operated stores. The company was founded by Jim Read in 1946 and is headquartered in Emeryville, CA.
Read More on GO:
- Grocery Outlet Holding Corp. Announces Fourth Quarter and Fiscal 2023 Financial Results
- GO Upcoming Earnings Report: What to Expect?
- Grocery Outlet to acquire United Grocery Outlet for $62M
- Grocery Outlet Expands with Southeastern Store Acquisition
- Grocery Outlet Holding Corp. To Acquire United Grocery Outlet
