Morgan Stanley Maintains Equal Weight Rating on Dollar General

According to Morgan Stanley, Dollar General DG Equal Weight rating is maintained. Morgan Stanley said that it believes investor sentiment on Dollar General is extremely positive yet it does not see much upside to 3Q estimates. “Gross margins should be the swing factor on earnings day (every 20 bps impacts EPS by ~$0.01) as the street is already expecting solid comps. As Dollar Tree and Walmart both showed gross margin declines, we would not be surprised to see GM pressure limiting upside to the quarter." Dollar General closed yesterday at $38.32.