Barclays Maintains an 'Overweight' on Dollar General (DG); 1Q11 Earnings Preview

Barclays maintains an 'Overweight' on Dollar General (NYSE: DG), PT $36.

Barclays analyst says, "We are forecasting 1Q EPS of $0.52, ahead of consensus of $0.50. Our EPS forecast is based on total sales of $3.4 billion, up 10.0% on comps of 4.5%. bad weather in the Southeast may have dampened sales but that is not in our forecast. We expect the gross margin to expand by 10 bp and SG&A dollars to grow by 8.0%, less than total sales growth."

"We continue to recommend purchase of DG as we believe it is one of the few dollar store stocks that is trading based on fundamentals, not takeout speculation (ie public offers for Family Dollar (NYSE: FDO) & 99 Cents Only (NYSE: NDN) and Big Lots (NYSE: BIG), "Big Lots Decides Not to Sell Itself, Wall Street Journal, 5/19/11)..."

For more ratings news on Dollar General click here and for the rating history of Dollar General click here.

Shares of Dollar General closed at $32.75 yesterday.

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