Bernstein: 'Dollar General (DG) Is Our Top Pick Over the Next 6-9 Months'

Bernstein SocGen Group analyst Zhihan Ma reiterated an Outperform rating and $126.00 price target on Dollar General (NYSE: DG).

The analyst commented: "DG is our top pick over the next 6-9 months. DG’s woes have been self-inflicted. As the turnaround strategy starts yielding results, we see plenty of gross margin recovery opportunities, led by shrink and damages reduction and mix normalization, which are still underappreciated by consensus. We see a path for DG to continue to beat and raise with these gross margin opportunities, coupled with the trade-down tailwind in the near term. Despite the stock being up +50% YTD, it remains below its historical levels and we still like the risker/reward, for now."

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 $116.30 yesterday.

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