MKM Partners Defends Dollar General (DG): Buy on any Pullback; Q2 Preview
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Price: $120.58 --0%
Rating Summary:
24 Buy, 23 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
24 Buy, 23 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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MKM Partners reiterates a 'Buy' on Dollar General (NYSE: DG) price target of $61.00.
Analyst, Patrick McKeever, said, "DG shares are down 11% from its 7/10/12 high vs. a 3% increase in the SPX, and the stock trades 15.6x our 2013 EPS estimate vs. its five-year median forward multiple of 17.2x. We attribute the pullback to concerns about slowing sales, rising gas prices and a more pronounced paycheck cycle. While we agree that the economic environment for the core dollar store customer remains difficult, we believe momentum is largely intact and view DG as among the best positioned retailers."
For Q2: Expect flat operating margin, 7% sq ft growth, high new store productivity and 3%-5% comps, and $0.64 EPS.
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 $50.07 yesterday.
Analyst, Patrick McKeever, said, "DG shares are down 11% from its 7/10/12 high vs. a 3% increase in the SPX, and the stock trades 15.6x our 2013 EPS estimate vs. its five-year median forward multiple of 17.2x. We attribute the pullback to concerns about slowing sales, rising gas prices and a more pronounced paycheck cycle. While we agree that the economic environment for the core dollar store customer remains difficult, we believe momentum is largely intact and view DG as among the best positioned retailers."
For Q2: Expect flat operating margin, 7% sq ft growth, high new store productivity and 3%-5% comps, and $0.64 EPS.
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 $50.07 yesterday.
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