Goldman Sachs No Longer Sees Broadline Retailers As Attractive

Stephen Grambling of Goldman Sachs stated on Wednesday that competitive changes within Broadline retailers will prevent many companies from achieving their multi-year outlook as comps will lag given weak trends in core categories. “While overall retail sales have accelerated, fundamentals for broadlines have not due to combination of structural, cyclical issues that are likely to persist,” the analyst wrote in a note. Of note, Grambling upgraded

to Buy while adding the company to Goldman Sach's “Conviction List.” Grambling stated that the bar was reset for the off-price retailer when the company reported its third quarter results but its long-term growth remains intact. Shares of

were removed from Goldman Sach's “Conviction List” but shares were maintained at Buy. Shares of

were downgraded to Sell as a challenging backdrop will weigh on the company's turnaround efforts. The analysts also downgraded shares of

to Neutral.