UPDATE: Citigroup Reiterates Buy Rating, Raises PT for Dollar General

In a company update published earlier today, Citigroup Inc. reiterated its Buy rating for Dollar General Corporation

and raised its price target from $54.00 to $65.00. Citigroup went on to say “Dollar General is the largest U.S. dollar store operator in terms of sales as well as the number of stores, and has been taking share from the competition through improvements in merchandising, the in-store environment/execution, and real estate site selection. Looking ahead, the company should benefit from its investments in merchandise improvements (especially non-consumables), growing private label and directly sourced goods, technology, and its new store and store remodel/relocation strategy, including innovative store formats. While Dollar General has benefited from the economic downturn though increased share of wallet with existing core customers and the capture of new, higher income customers who traded down, the company's unique proposition of value (EDLP strategy, priced at parity with WMT) and convenience is a strategic advantage ahead. Finally, we have a favorable view regarding Dollar General's significant cash flow generation ahead.” Dollar General Corporation closed on Friday at $48.62.