UPDATE: Morgan Stanley Initiates Coverage On Dollar General

In a note dated June 24, Morgan Stanley analyst, Vincent Sinisi initiated coverage on Dollar General DG with an Equal-weight rating and a $68 price target.

Sinisi provided EPS estimates for 2015 to 2017 of $4.10, $4.78 and $5.54, which are $0.04, $0.04 and $0.11 above consensus, respectively. These estimates reflect his expectations for consistent sales growth and positive EBIT margin inflection. Furthermore, Sinisi believes the company's solid share buyback program will continue to be a driver of EPS growth.

Looking forward, Sinisi is optimistic about the company's plan to expand its assortment of non-consumable goods priced between $1 - $5 as part of its Everyday Low Price strategy.

Despite the optimistic tone of his note, Sinisi commented, "Dollar General lacks near-term catalysts, and we await signs of an improved lower-end consumer macro environment to drive upside."

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPrice TargetInitiationAnalyst RatingsMorgan StanleyVincent Sinisi
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!