Grocery Outlet Retail Investors Cheer As Jefferies Upgrades Stock To 'Buy' On Turnaround Efforts

Grocery Outlet Holding (GO) shares rose 5.3% on Wednesday, after Jefferies upgraded its rating on the company, citing improvements under the new management.

The Wall Street research firm raised the rating to 'Buy' from 'Neutral' and price target to $18 from $13, according to The Fly.

Grocery Outlet is a discount retailer offering private-label groceries and fresh products through independently operated stores.

In February, the company appointed former Fresh Market CEO Jason Potter as its chief executive, following the appointment of a new CFO the previous month.

Jefferies said it was encouraged by its recent checks, which showed improving operations and clearing of certain company-wide technology issues.

Furthermore, the brokerage believes Grocery Outlet's defensive positioning as a low-price grocer could drive outperformance during periods of economic uncertainty.

On Stocktwits, retail sentiment held in the 'bullish' zone, while message volume was ‘low.’

A user posted that the recent stock performance signals further upside based on the technical chart.

Shares of Grocery Outlet are down 6.2% year to date.

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