Dollar General (DG) Expected Upside Mostly Priced In - Guggenheim

Guggenheim analyst John Heinbockel reiterated a Buy rating on Dollar General (NYSE: DG) expects a “beat and raise” when the company reports 3Q results but he sees the upside as modest and will likely only generate a muted share price reaction due to the already healthy valuation.

The analyst maintained the $165.00 price target stating "Unlike the DLTR brand, DG has strong, relatively broad-based comp momentum and is not subject to the same helium/tariff-related margin challenges. As such, we see 8% sales and 10% EBIT growth with a likelihood that full year EPS can reach (or exceed) the high end of guidance ($6.60). Given the shortened holiday selling season and typical conservatism, we believe the midpoint is likely to remain below this level".

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 $157.36 yesterday.

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