Bank of America upgrades Grocery Outlet stock and lifts target to USD 15.00

Published on 10/16/2026 at 01:30 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

The October 21 results will test Grocery Outlet stock after Q2 revenue reached USD 1.19 billion. Adjusted EPS was USD 0.20 versus USD 0.12 expected.

Analyst view and earnings dates

Bank of America moved its rating to Buy and its target to USD 15.00 on September 30, 2026.
Second-quarter fiscal 2026 revenue reached USD 1.19 billion, while adjusted earnings per share was USD 0.20.
Grocery Outlet is scheduled to report third-quarter results on October 21, 2026.

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Bank of America upgraded Grocery Outlet stock from Neutral to Buy and raised its target from USD 12.50 to USD 15.00 in a note dated September 30, 2026, according to Investing.com. The upgrade puts the discount grocer's merchandise strategy and earnings recovery ahead of its third-quarter report.

Three milestones frame the turnaround

On August 12, 2026, Grocery Outlet reported second-quarter fiscal 2026 revenue of USD 1.19 billion and adjusted earnings per share of USD 0.20, compared with USD 0.12 expected, according to Investing.com. On August 17, 2026, Grocery Outlet announced its sixteenth annual Independence from Hunger campaign, according to the company's investor-relations page. The September 30, 2026, Bank of America note was the latest of these milestones and set the USD 15.00 target.

What does the target imply for earnings?

Bank of America linked its upgrade to a return of attractively priced opportunistic merchandise and to e-commerce pricing parity with DoorDash, Uber Eats and Instacart, as CNBC reported on October 10, 2026. The key test is whether those changes can support traffic and basket size while the company rebuilds profitability. Grocery Outlet's Q2 adjusted earnings per share exceeded the USD 0.12 consensus by USD 0.08, while revenue beat the USD 1.17 billion estimate by USD 0.02 billion, according to Investing.com.

When are the next results due?

Grocery Outlet is scheduled to report third-quarter results on October 21, 2026, according to CNBC. The next earnings date listed for the company is November 3, 2026, according to Yahoo Finance. The differing dates make the reporting calendar an important point for investors to track.

Market value sets a separate test

Grocery Outlet had a market capitalization of USD 1.3 billion as of October 15, 2026, with a 52-week range of USD 5.66 to USD 15.92. The valuation question is whether the merchandise and digital-pricing changes can turn the Q2 earnings beat into a sustained improvement rather than a single-quarter comparison.