UPDATE: BMO Capital Markets Reiterates Outperform Rating, Lowers PT on Dollar General Corp.
In a report published Wednesday, BMO Capital Markets reiterated its Outperform rating on Dollar General Corp. (NYSE: DG), but slightly lowered its price target from $61.00 to $60.00.
BMO Capital Markets noted, “While earnings were better than expected, we are maintaining our FY2012 earnings estimate of $2.85 and reducing our FY2013 estimate to $3.35 from $3.40. YTD, the stock is up 4.4% compared with a 13.5% increase in the S&P 500 and trades at 12.8x our FY2013 EPS estimate or 3% discount to the S&P 500. We believe the reaction to management's comments is overdone and use the weakness to reiterate our Outperform rating. Our 12-month price objective of $60, down from $61 assumes the stock trades at 15x our FY2014 estimate of $4.00 per share.”
Dollar General Corp. closed on Tuesday at $42.94.
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