BofA downgraded Grocery Outlet (GO) to Neutral from Buy with a price target of $17, down from $29, following the announcement that CEO RJ Sheedy is resigning and leaving, effective immediately. Despite a more positive long-term outlook for Grocery Outlet supported by its “differentiated model, extreme customer value proposition and long-term growth opportunity,” the CEO uncertainty could pressure the stock “given important unanswered questions,” the analyst tells investors in a research note. The firm sees more questions than answers for the company, including how long the CEO search will take and what is pressuring the adjusted EBITDA outlook.
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Read More on GO:
- Grocery Outlet price target lowered to $26 from $28 at Wells Fargo
- Grocery Outlet Holding Announces Leadership Change and Growth Forecast
- Grocery Outlet sees Q3 revenue $1.1B, consensus $1.09B
- Grocery Outlet sees FY24 revenue over previous guidance $4.30B-$4.35B
- Grocery Outlet appoints Eric Lindberg as Interim Presidente and CEO
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