UPDATE: Sterne Agee Initiates Coverage on Dollar General With Neutral Rating

In a report published on Wednesday Sterne Agee initiated coverage on

with a Neutral rating and a $56 PT. In the report lead analyst Charles Grom commented that, " Despite growing SPSF by ~25% since '08 ($158-->$195), we still see multiple levers ahead for DG, incl.: (1) price investment focus = traffic gains/gradual increase in consumable SKU's; (2) continued remodel/relocation strategy (5%/25% SSS lift, resp.); (3) Phase V program on ~3,000 legacy stores; (4) additional cooler rollout (target of 18/store); (5) final push in beer/wine into ~1,000 loc's; (6) tobacco add-on will occur by 2Q13; (7) zone pricing/category management; and (8) discretionary improvement. All told, see SSS up 3-5% in '13-'15." Dollar General closed on Wednesday at $50.19