Roth MKM analyst Bill Kirk lowered the firm’s price target on Grocery Outlet to $22 from $27 and keeps a Neutral rating on the shares. The company’s Q1 comps topped estimates but profitability fell short, with remaining issues in Q1 and partially Q2 being shrink and unexpected product costs, the analyst tells investors in a research note. Grocery Outlet’s traffic and transactions remain strong, but the firm is worried about contracting basket size despite inflation, the firm added.
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