Barclays Maintains an 'Overweight' on Dollar General (DG); 2Q11 Earnings Preview
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Price: $123.41 +2.35%
Rating Summary:
24 Buy, 23 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
24 Buy, 23 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Overweight' on Dollar General (NYSE: DG) price target of $38.00.
Barclays analyst says, "We are forecasting 2Q EPS of $0.49, slightly ahead of consensus of $0.48. Our EPS forecast is based on total sales of $3.54 billion, up 10.1% on comps of 4.5%. We expect the gross margin to decline by 30 bp and SG&A dollars to grow by 8.0%, less than total sales growth. There will also likely be some one-time charges related to DG's redemption of $839 million of senior notes at their $105 call price."
"We continue to recommend purchase of DG as we believe it is well positioned in the current economic environment or if the US falls back into a recession."
(NOTE - DG is scheduled to report Q2 results on August 30)
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 $32.23 yesterday.
Barclays analyst says, "We are forecasting 2Q EPS of $0.49, slightly ahead of consensus of $0.48. Our EPS forecast is based on total sales of $3.54 billion, up 10.1% on comps of 4.5%. We expect the gross margin to decline by 30 bp and SG&A dollars to grow by 8.0%, less than total sales growth. There will also likely be some one-time charges related to DG's redemption of $839 million of senior notes at their $105 call price."
"We continue to recommend purchase of DG as we believe it is well positioned in the current economic environment or if the US falls back into a recession."
(NOTE - DG is scheduled to report Q2 results on August 30)
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 $32.23 yesterday.
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