Grocery Outlet (NASDAQ:GO) Price Target Lowered to $7.00 at Morgan Stanley

Grocery Outlet (NASDAQ:GO) had its target price cut by research analysts at Morgan Stanley from $11.00 to $7.00 in a report issued on Thursday,Benzinga reports. The brokerage presently has an “equal weight” rating on the stock. Morgan Stanley’s price objective would suggest a potential downside of 20.36% from the company’s previous close.

Other research analysts have also recently issued research reports about the stock. Deutsche Bank Aktiengesellschaft set a $11.00 price objective on shares of Grocery Outlet in a report on Thursday, January 8th. The Goldman Sachs Group decreased their price target on shares of Grocery Outlet from $12.00 to $9.00 and set a “sell” rating for the company in a report on Thursday, February 19th. Zacks Research downgraded Grocery Outlet from a “strong-buy” rating to a “hold” rating in a research note on Friday, November 14th. TD Cowen reduced their target price on Grocery Outlet from $18.00 to $16.00 and set a “hold” rating on the stock in a report on Wednesday, November 5th. Finally, Telsey Advisory Group downgraded Grocery Outlet from an “outperform” rating to a “market perform” rating and lowered their price target for the stock from $15.00 to $9.00 in a report on Thursday. One investment analyst has rated the stock with a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus target price of $11.73.

Grocery Outlet Trading Down 0.9%

NASDAQ GO opened at $8.79 on Thursday. Grocery Outlet has a 12 month low of $8.73 and a 12 month high of $19.41. The stock has a 50-day simple moving average of $9.79 and a 200 day simple moving average of $12.74. The company has a current ratio of 1.30, a quick ratio of 0.25 and a debt-to-equity ratio of 0.40. The company has a market capitalization of $862.65 million, a PE ratio of -175.80, a P/E/G ratio of 1.80 and a beta of 0.50.

Grocery Outlet (NASDAQ:GO) last issued its earnings results on Wednesday, March 4th. The company reported $0.19 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.02). The company had revenue of $1.22 billion for the quarter, compared to the consensus estimate of $1.23 billion. Grocery Outlet had a positive return on equity of 5.86% and a negative net margin of 0.10%.Grocery Outlet’s quarterly revenue was up 10.7% on a year-over-year basis. During the same quarter last year, the business posted $0.15 EPS. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. Research analysts forecast that Grocery Outlet will post 0.63 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. PNC Financial Services Group Inc. lifted its position in Grocery Outlet by 32.3% during the 2nd quarter. PNC Financial Services Group Inc. now owns 2,942 shares of the company’s stock worth $37,000 after buying an additional 719 shares in the last quarter. Thrivent Financial for Lutherans increased its position in shares of Grocery Outlet by 1.0% in the second quarter. Thrivent Financial for Lutherans now owns 72,087 shares of the company’s stock valued at $895,000 after acquiring an additional 739 shares during the last quarter. Bank of Montreal Can raised its holdings in Grocery Outlet by 5.1% during the second quarter. Bank of Montreal Can now owns 16,525 shares of the company’s stock worth $205,000 after acquiring an additional 803 shares in the last quarter. Amalgamated Bank raised its holdings in Grocery Outlet by 3.5% during the third quarter. Amalgamated Bank now owns 28,875 shares of the company’s stock worth $463,000 after acquiring an additional 967 shares in the last quarter. Finally, Natixis Advisors LLC boosted its position in Grocery Outlet by 5.5% during the third quarter. Natixis Advisors LLC now owns 30,320 shares of the company’s stock valued at $487,000 after purchasing an additional 1,591 shares during the last quarter. Institutional investors own 99.87% of the company’s stock.

Grocery Outlet News Roundup

Here are the key news stories impacting Grocery Outlet this week:

• Positive Sentiment: Revenue and margins improved year-over-year: Q4 sales rose ~10.7% to $1.22B and gross profit increased ~11.5%; operating cash flow and cash balances also grew, which supports near-term liquidity. Read More.
• Neutral Sentiment: The company noted an extra 53rd week in the period (complicates year?over?year comps) and announced a formal “Optimization Plan” to improve execution, profitability and cash flow — the plan could help margins long term but may include near?term charges/costs. Read More.
• Negative Sentiment: Reported EPS missed estimates: Q4 EPS $0.19 vs. consensus ~$0.21 and revenue slightly below forecasts — investors view the miss as a sign of margin pressure. Read More.
• Negative Sentiment: FY2026 guidance came in below Street expectations: EPS guide of $0.45–$0.55 (consensus ~$0.77) and revenue guide of ~$4.6–4.7B vs. ~4.8B consensus — this weaker outlook is the primary driver of investor concern. Read More.
• Negative Sentiment: GAAP/one?time items drove large reported operating and net losses in some reports (Quiver highlighted an operating loss and a GAAP diluted loss per share), amplifying the market reaction; shares reportedly fell sharply after the release. Read More.
• Negative Sentiment: Notable insider and institutional selling reported in the quarter (including large fund reductions), which can add selling pressure following the weak report and guide. Read More.

About Grocery Outlet

Grocery Outlet Holding Corp. (NASDAQ: GO) is a specialty discount retailer that offers consumers deeply discounted groceries by purchasing excess inventory, closeouts, and overstocks from manufacturers and distributors. Headquartered in Emeryville, California, the company operates two primary banners—Grocery Outlet and Fresh2Go—with a combined footprint of more than 400 stores. Its product assortment spans fresh produce, meat, dairy, bakery items, household staples, natural and organic offerings, and select specialty products, all sold at significant markdowns compared to conventional supermarkets.

The company’s unique buying model enables it to source inventory through opportunistic purchases of surplus freight, discontinued items, and closeout deals, which it then passes on as savings to its customers.