GO - Grocery Outlet jumps after BofA flips from bear to bull

Grocery Outlet Holding Corp. (NASDAQ:GO +2.9%) gains after Bank of America upgrades the stock straight to a Buy rating from Underperform on its view that prices increases will support EPS upside. Analyst Robert Ohmes and team think GO deserves a premium valuation in comparison to food retail peers given its unique and hard to replicate "IO model, opportunistic sourcing model" that delivers deep value and consistent margins. Also called out on GO was the low risk sustainable growth horizon for the grocery store operator with a long-term opportunity for over 5,000 stores in the U.S. Looking at the grocery sector, BofA has a broad view that elevated food at home inflation will continue, supporting sales/EPS upside in 2022 and beyond. Sprouts Farmers Market was also tagged with a  two-notch upgrade on Friday.

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Grocery Outlet jumps after BofA flips from bear to bull