DA Davidson analyst Michael Baker raised the firm's price target on Grocery Outlet to $9 from $7 and keeps a Buy rating on the shares. Following several executional missteps last year, Grocery Outlet put in an improvement plan last quarter that included adding back more opportunistic buys, increasing promotional activity to bridge the gap until the opportunistic mix improves, and closing stores, as well as continuing a store remodel program, the analyst tells investors in a research note. The company's Q1 performance showed some progress, particularly with respect to improving the opportunistic mix, leading to better comp traffic at the end of the quarter, the firm added.
