Jefferies has revised its stance on Grocery Outlet (GO, Financial), elevating the company from a Hold to a Buy rating. The investment firm has also increased its price target for the low-price grocery chain to $18, up from the previous target of $13.
The upgrade is based on Grocery Outlet's robust positioning as a budget-friendly retailer, which could lead to superior performance during uncertain economic times. According to Jefferies, while past struggles with enterprise-wide technology issues have clouded the company's performance metrics, recent changes have shown promise. New management efforts and operational improvements, along with positive recent data, suggest a potential for growth and increased visibility moving forward.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Grocery Outlet Holding Corp (GO, Financial) is $13.85 with a high estimate of $18.00 and a low estimate of $10.00. The average target implies an downside of 0.39% from the current price of $13.90. More detailed estimate data can be found on the Grocery Outlet Holding Corp (GO) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Grocery Outlet Holding Corp's (GO, Financial) average brokerage recommendation is currently 3.1, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Grocery Outlet Holding Corp (GO, Financial) in one year is $38.11, suggesting a upside of 174.17% from the current price of $13.9. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Grocery Outlet Holding Corp (GO) Summary page.
