The Future Is Bright For Grocery Outlet: Analyst On Square Footage Growth And Digital Marketing As Key To Market Share Gains
Portfolio Pulse from Shivani Kumaresan
Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating on Grocery Outlet Holding Corp (NASDAQ:GO) with a price target of $40. The company's business is expected to remain solid due to strong traffic and consumer spending on basics. Grocery Outlet is leveraging technology and partnerships to gain new customers and increase productivity. The company plans to open 25-28 new stores in 2023 and focus on square footage growth and digital marketing beyond 2023.
September 15, 2023 | 6:10 pm
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POSITIVE IMPACT
Grocery Outlet's strong traffic, tech leverage, and expansion plans are expected to drive its growth.
The analyst's Outperform rating and the company's strong business performance, tech leverage, and expansion plans are likely to have a positive impact on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Grocery Outlet is attempting to offer prices lower than Walmart by ~20%.
While Grocery Outlet's attempt to undercut Walmart's prices could potentially impact Walmart's business, the extent of this impact is uncertain.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50