UPDATE: Deutsche Bank Reiterates Buy Rating, Lowers PT on Dollar General
In a report published Monday, Deutsche Bank reiterated its Buy rating on Dollar General Corp. (NYSE: DG), but lowered its price target from $61.00 to $55.00.
Deutsche Bank noted, “Dollar General has been the victim of a sentiment shift in a space that has endured a rough 5+ months, beaten up on concerns about slowing sales trends (exhibited DLTR, FRED, etc.) and a more competitive environment (WMT being WMT) throughout the Fall. Net, we remain cautiously optimistic on 3Q SSS trends (DB @ 4.0% - below the Street @ 4.6%) and suspect an ‘OK' quarter could provide some relief to investors, despite the stock being a bit crowded. All told, we prefer to stick with DG in the $ store space due to its demonstrated operational aptitude and respectable valuation.”
Dollar General Corp. closed on Friday at $50.00.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tags: Deutsche Bank