BofA downgrades Grocery Outlet on uncertainty from CEO change
The Fly

BofA downgrades Grocery Outlet on uncertainty from CEO change

BofA downgraded Grocery Outlet (GO) to Neutral from Buy with a price target of $17, down from $29, following the announcement that CEO RJ Sheedy is resigning and leaving, effective immediately. Despite a more positive long-term outlook for Grocery Outlet supported by its “differentiated model, extreme customer value proposition and long-term growth opportunity,” the CEO uncertainty could pressure the stock “given important unanswered questions,” the analyst tells investors in a research note. The firm sees more questions than answers for the company, including how long the CEO search will take and what is pressuring the adjusted EBITDA outlook.

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