BUZZ - Bank of America upgrades Grocery Outlet to "Buy", shares rise

September 30 - ** Discount food retailer Grocery Outlet Holding (GO.O) saw its share price rise by 2.6% to $11.25 after Bank of America upgraded the stock from "neutral" to "buy".

** The broker raised its price target from $12.50 to $15.

** Despite market concerns over supply chain costs, East Coast production efficiency, and the effectiveness of store renovation plans, Bank of America stated the stock's valuation remains attractive.

** The company’s “treasure hunt” shopping model continues to be optimized under CEO Jason Potter’s leadership.

** It is expected that pricing parity in e-commerce with DoorDash DASH.O, Uber Eats under Uber Technologies UBER.K, and Instacart CART.TO will support company sales.

** In August, the company (link) forecast a narrowing decline in full-year sales and reported better-than-expected second-quarter results.

** Out of 14 brokers, 1 gives the stock a "strong buy" rating, 12 recommend "hold", and 1 rates it a "sell"; the median price target is $11, according to LSEG data.

** Including today's gains, GO shares are up 11.3% year-to-date.

(To assist non-English speakers, Reuters has automated the translation of its reports into several other languages. Since automated translation may contain errors or lack the intended context, Reuters does not guarantee the accuracy of the translated text, which is provided solely for reader convenience. Reuters bears no responsibility for any damages or losses arising from the use of the automated translation function.)