Grocery Outlet price target lowered to $20 from $22 at Roth MKM

Roth MKM analyst Bill Kirk lowered the firm’s price target on Grocery Outlet to $20 from $22 and keeps a Neutral rating on the shares after its Q2 results. The company’s profitability improved, but its comp sales are decelerating as the U.S. consumer increasingly seeking value was a “surprising disconnect”, the analyst tells investors in a research note. Better priced operators should accelerate when value proposition increases in importance, the firm added.