UPDATE: Bank of America Merrill Lynch Raises PT on Dollar General to $60
Bank of America Merrill Lynch maintains a Buy rating on Dollar General (NYSE: DG) and raises its price target from $56 to $60.
Bank of America Merrill Lynch notes, “We are raising estimates for DG, as we believe strong comp trends experienced in 1Q12 will continue. Our EPS estimates are now as follows: 2012 is $2.86 on a 6% comp (from $2.83 on a 5% comp, and vs. guidance of $2.68-2.78 on 3-5% comps); 2013 is $3.39 (from $3.35); and 2014 is $4.00 (from $3.96). We are also raising our PO to $60 on 21x our 2012E EPS. Given strong growth prospects and potential for additional earnings upside, we believe a higher multiple is warranted.”
Dollar General closed at $52.60 on Wednesday.
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