UPDATE: Credit Suisse Reiterates Neutral Rating, Lowers PT on Dollar General Corp.
In a report published Wednesday, Credit Suisse Group reiterated its Neutral rating on Dollar General Corp. (NYSE: DG), but lowered its price target from $56.00 to $48.00.
Credit Suisse noted, “DG's Q3 earnings confirmed investor fears that momentum is slowing and the company appears to be facing a more difficult operating environment. While Q3 EPS of $0.63 beat consensus and our estimate of $0.60, comps and the gross margin disappointed. Results were pressured by difficult comparisons, a weakening consumer, and increased competitive pressure. Strong cost control saved the quarter. Management's tone suggested that these issues could continue to weigh on results over the next few quarters. As a result, the company has laid out an aggressive plan to improve traffic and sales in 2013, including investment in price, the roll-out of tobacco, an acceleration of its cooler expansion, a more aggressive implementation of Phase V, and continued remodels.”
Dollar General Corp. closed on Tuesday at $42.94.
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