Citi Upgrades Dollar General (DG) to Neutral

Citi analyst Paul Lejeuz upgraded Dollar General (NYSE: DG) from Sell to Neutral with a price target of $101.00 (from $69.00).

The analyst comments: "We are upgrading DG from Sell to Neutral. In the near-term DG does not have the same tariff risk as most others in our retail universe, and may benefit from consumers trading down (given its mindshare for value). Taking a 12-month view, we no longer believe a Sell rating is warranted, as consumables-based businesses are likely to fare better than those selling more discretionary products. While much of our universe is dealing with 50-100% of their products subjected to tariffs, we estimate only ~10% of DG’s sales are affected by tariffs (as most of what DG sells are food/ consumables). And although long term pressures stemming from “WMT Winning” have not changed, in the current environment, DG’s positioning as a retailer with mindshare for value should help them avoid any significant pressure from a potentially weakening consumer. We believe the risk/reward is more balanced."

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 $92.62 yesterday.

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