UPDATE: Citigroup Reiterates Buy Rating, Lowers PT on Dollar General Corp.

In a report published Wednesday, Citigroup reiterated its Buy rating on Dollar General Corp.

, but lowered its price target from $65.00 to $55.00. Citigroup noted, “DG delivered third quarter EPS that were above our estimate and consensus. However, management provided a cautious outlook on the consumer in light of slowing comp trends in October. The company also noted a heightening competitive environment and plans to invest in price to drive unit volumes. We were also encouraged to see DG press its initiatives to drive topline, including tobacco rollout, execution of Phase V, and cooler expansion. We believe DG has one of the best management teams in retail and will successfully navigate this volatile nearterm environment. We are modestly reducing our expectations for 4Q12/2013 and are lowering our target price to $55 from $65 prev. We reiterate our Buy rating.” Dollar General Corp. closed on Tuesday at $42.94.