Grocery Outlet price target lowered to $31 from $37 at Telsey Advisory

Telsey Advisory analyst Joseph Feldman lowered the firm’s price target on Grocery Outlet to $31 from $37 and keeps an Outperform rating on the shares. The company reported mixed Q1 results, with a sales beat, profit miss, and lowered FY24 guidance, the analyst tells investors. Over the past year, the company experiences a system transition issue which created a profit pressure of approximately $65M, but the firm believes this issue was transitory and expects future gains from lapping these elevated costs.