Dollar General (DG)/Family Dollar Stores (FDO) More Logical and Synergistic, Jefferies Says

Jefferies analyst Daniel Binder reiterated a Buy rating and $75 price target on Dollar General (NYSE: DG) following the company's $78.50/share takeover offer for Family Dollar Stores (NYSE: FDO).

Binder comments, "We believe a DG/FDO combination is more logical and synergistic than a DLTR/FDO combination. We also believe synergies are understated at $550-$600 million and could ultimately be closer to $1 billion. This gives DG the flexibility to bid higher and win any bidding war that may erupt with DLTR."

For an analyst ratings summary and ratings history on Dollar General click here. For more ratings news on Dollar General click here.

Shares of Dollar General closed at $64.14 yesterday.

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