Jefferies maintained a Hold rating on Dollar General (NYSE: DG), and cut the price target to $70.00 (from $72.00), following the company's 3Q earnings report. Management still believes its sluggish sales are rooted in a distressed lower income consumer, which is faced with rent and healthcare cost pressures as well as SNAP reductions.

Analyst Daniel Binder commented, "Mgmt. should be lowering its store growth rate along with the EPS outlook, but is staying firm on its plan for 1,000 new stores in FY18. DG points to a struggling consumer, but our research suggests that after a year of above average income growth (4%+), lower income consumers are doing more stockup trips. Combined, with incremental price competition DG is feeling pressure, but price investment is the right thing to do longer-term."

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Shares of Dollar General closed at $73.48 yesterday.