Barclays Maintains an 'Overweight' on Dollar General (DG); Operating Margins Have Not Peaked
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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 raised from $38 to $41.
Barclays analyst says, "DG again achieved healthy sales growth and a solid operating margin improvement in 2Q11, and these results demonstrate quite clearly that its gross margin decline in 1Q was mostly a result of apparel and home product markdowns rather than an inability to pass along higher product costs. In fact, the company was adamant that its philosophy about protecting consumers from big cost increases has not changed, though inflation remains moderate at only 1.5%."
"We are raising our FY11 EPS estimate $0.01, to $2.28, to reflect the 2Q11 beat relative to our estimate, partially offset by slightly more conservative 2H11 estimates. Our FY12 EPS remains unchanged at $2.74."
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 $35.76 yesterday.
Barclays analyst says, "DG again achieved healthy sales growth and a solid operating margin improvement in 2Q11, and these results demonstrate quite clearly that its gross margin decline in 1Q was mostly a result of apparel and home product markdowns rather than an inability to pass along higher product costs. In fact, the company was adamant that its philosophy about protecting consumers from big cost increases has not changed, though inflation remains moderate at only 1.5%."
"We are raising our FY11 EPS estimate $0.01, to $2.28, to reflect the 2Q11 beat relative to our estimate, partially offset by slightly more conservative 2H11 estimates. Our FY12 EPS remains unchanged at $2.74."
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 $35.76 yesterday.
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