Dollar General Initiated At Buy, BTIG Research Is Positive On Co's Ability To Expand Square Footage Further

After the close on Wednesday analyst Alan Rifkin initiated coverage on Dollar General DG with a Buy rating and a $105 PT. Rifkin appreciates Dollar General's "very strong track record of operating results" noting 2015 was the 26th consecutive year of positive same-store sales growth. Consistency of store traffic, which has posted an impressive 22 consecutive quarters of YoY increases, has driven an average EPS growth of 11 percent between 2012 and 2015. In the coming 3-5 year period Rifkin believes "top-line and bottom-line growth prospects remains bright." Square footage growth of 7 to 7.5 percent domestically through 2018 leaves Rifkin encouraged about the company's ability to continue to drive predictable growth. Management also has a strong grasp of what is required to drive prudent organic growth while enhancing shareholder returns, which is something investors should view as a significant factor when deciding if Dollar General is worth owning. Rifkin says investors need not worry about internalization or development/success of secondary concepts which "typically do not work well for even proven entities." Rifkin forecasts Dollar General will grow EPS 12-15 percent annually through 2018. Shares of Dollar General closed the regular session up $0.85 to $90.72, a intraday gain of ~1 percent.