Deutsche Bank Upgrades Dollar General (DG) to Buy; First Time For Everything

Deutsche Bank upgraded Dollar General (NYSE: DG) to Buy with a new price target of $48.00.

Deutsche analyst says, "DG's recent 3Q print revealed shades of both Costco (Nasdaq: COST) / Whole Foods (NYSE: WFM) that we don't feel are fully discounted in the stock at ~$39; hence we are upgrading DG to Buy. To explain, DG's commitment to low prices is translating into accelerating traffic - a characteristic we prefer in today's backdrop. Also, with plans to repurchase $500M of stock (and continue deleveraging at the same time), DG now has multiple levers to drive +15-20% EPS growth. Finally, since 9/15, DG has lagged, up 5% (vs. group up 13%), so we expect some mean reversion to transpire."

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 $39.63 yesterday.

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