GO - Grocery Outlook rallies 15% amid Buy ratings at rating firms driven by Q1 strong performance raised guidance

Grocery Outlet (NASDAQ:GO) rallied 14% higher until the mid-day noon trading today after Craig Hallum upgraded the stock to Buy from Hold and Deutsche Bank also upgraded the stock to Buy from Hold with price target raised to $40 from $29. While the rating agency believes that it is perfectly positioned for the current inflationary environment, Q1 earnings, revenue beat and raised 2022 guidance confirms its view. With inflationary pressures to continue throughout 2022, incremental traffic to GO stores is seen rising high and comps reaching high levels. The company is building momentum with positive traffic gains in 2022 with comps improving each month in 2022. With both food-at-home and away from home costs surging double digits, there is a high upside potential for upside on same store sales. New unit growth was reaffirmed at 28 stores or about 7% unit growth. Revenue now expected between $3.39 to $3.42B, vs. prior guidance

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Grocery Outlook rallies 15% amid Buy ratings at rating firms driven by Q1 strong performance, raised guidance