Jefferies Cuts Price Target on Dollar General (DG) to $78 Following 2Q Report

August 26, 2016 10:04 AM EDT
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Price: $70.46 -0.76%

Rating Summary:
    17 Buy, 16 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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Jefferies maintained a Hold rating on Dollar General (NYSE: DG), and cut the price target to $78.00 (from $96.00), following the company's 2Q earnings report. Same store sales increased 0.7%, short of the Street's expectation for +2.7%. EPS of $1.08 was a penny short of Street expectation.

Analyst Daniel Binder commented, "Sales came in short of expectations as pressures built in food deflation, SNAP benefit reductions and increased competition. DG has already taken steps to respond through its own price investment, which is expected to increase in the coming quarters. 15% EPS growth originally appeared conservative given various margin and expense initiatives, but upside looks to be off the table as sales soften and margin assumption come down."

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 $75.61 yesterday.

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