DA Davidson Cuts Grocery Outlet Price Target to $7.00

Analysts downgrade rating and lower earnings forecast for discount grocery chain

Published on Mar. 5, 2026

Got story updates? Submit your updates here. ›

Grocery Outlet (NASDAQ:GO), a discount grocery store chain headquartered in Emeryville, California, saw its stock price plummet after analysts at DA Davidson lowered their price target from $11.00 to $7.00 and downgraded the stock to a "neutral" rating. The analysts cited weakening comparable-store sales, increased promotions that are pressuring margins, and a guidance cut for fiscal year 2026 earnings per share.

Why it matters

Grocery Outlet's business model of offering deeply discounted groceries by purchasing excess inventory and closeouts has been challenged recently, with the company losing some of its "value perception" compared to competitors. The stock's sharp decline and negative analyst sentiment raise concerns about the company's ability to maintain its growth trajectory and profitability going forward.

The details

In a research note, DA Davidson analysts lowered their price target on Grocery Outlet shares from $11.00 to $7.00 and downgraded the stock to a "neutral" rating. Several other research firms, including Zacks, Morgan Stanley, and Telsey Advisory Group, also cut their price targets and ratings on the stock following Grocery Outlet's fourth-quarter earnings report, which missed analyst expectations. The company reported Q4 earnings per share of $0.19, versus the consensus estimate of $0.21, and issued fiscal year 2026 EPS guidance of $0.45 to $0.55, well below the previous consensus of around $0.77.

  • Grocery Outlet reported its fourth-quarter 2025 earnings on March 4, 2026.

The players

Grocery Outlet

A specialty discount retailer that offers consumers deeply discounted groceries by purchasing excess inventory, closeouts, and overstocks from manufacturers and distributors. The company operates over 400 stores under the Grocery Outlet and Fresh2Go banners.

DA Davidson

An equity research firm that covers Grocery Outlet and recently lowered its price target and rating on the stock.

Got photos? Submit your photos here. ›

What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

The takeaway

Grocery Outlet's struggles to maintain its value perception and competitive edge have led to a sharp decline in its stock price and negative analyst sentiment. The company will need to address these challenges through its optimization plan and find ways to drive traffic and protect margins if it hopes to regain investor confidence.