** Shares of discount retailer Grocery Outlet Holding Corp <GO.O> rise 2.5% to $16.45 premarket

** Telsey Advisory Group upgrades GO's rating to "outperform" from "market perform"; raises PT to $20.00 from $16.00

** Brokerage cites early success of new store formats and operational fixes under fresh leadership that are driving improved sales and margins

** “We noticed a positive change in the organizational mindset toward selling from buying,” Telsey says, highlighting a renewed focus on merchandising and operations

** Four of 13 brokerages rate the stock "buy" or higher, eight "hold" and one "sell"; their median PT is $17.50, according to data compiled by LSEG

** Up to last close, GO stock up 3% YTD

(Reporting by Sanskriti Shekhar)

((Sanskriti.Shekhar@thomsonreuters.com))