Grocery Outlet price target lowered to $12 from $16 at Roth MKM

Roth MKM lowered the firm’s price target on Grocery Outlet (GO) to $12 from $16 and keeps a Neutral rating on the shares. Grocery Outlet has made the “difficult decision” to pause some growth initiatives to re-focus efforts on core value and merchandising opportunities, notes the analyst, who points out that re-establishing value gaps will weigh on near-term profitability. However, the firm adds that it believes new management has relevant experience at The Fresh Market to “re-establish Grocery Outlet’s core treasure-hunting experience.”