Barclays Maintains an 'Overweight' on Dollar General (DG); Multiple Opportunities From Multiple Formats
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Price: $123.28 +0.98%
Rating Summary:
24 Buy, 23 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
24 Buy, 23 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Overweight' on Dollar General (NYSE: DG) price target raised from $44 to $52.
Analyst, Meredith Adler, said, "DG's value proposition is resonating with both new and existing customers, and it has been able to achieve a wider operating margin even with higher sales of low-margin consumables and steady investments in infrastructure. A high and increasing operating margin has been a concern for investors, but DG believes it can achieve additional improvement. It has identified opportunities to help offset the gross margin pressure resulting from a growing consumables mix, including direct foreign sourcing, private label, and shrink."
Adler sees unit growth in new and existing markets. The focus on 'Multiple Formats' will help DG 'optimize' in each market. Barclays also notes that DG is putting its rising cash flow back into the business at high rates of return.
Barclays EPS estimate for Q1 is $0.59, FY12 at $2.76 and starts FY13 at $3.27.
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 $46.14 yesterday.
Analyst, Meredith Adler, said, "DG's value proposition is resonating with both new and existing customers, and it has been able to achieve a wider operating margin even with higher sales of low-margin consumables and steady investments in infrastructure. A high and increasing operating margin has been a concern for investors, but DG believes it can achieve additional improvement. It has identified opportunities to help offset the gross margin pressure resulting from a growing consumables mix, including direct foreign sourcing, private label, and shrink."
Adler sees unit growth in new and existing markets. The focus on 'Multiple Formats' will help DG 'optimize' in each market. Barclays also notes that DG is putting its rising cash flow back into the business at high rates of return.
Barclays EPS estimate for Q1 is $0.59, FY12 at $2.76 and starts FY13 at $3.27.
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 $46.14 yesterday.
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