Analyst Sees Attractive Entry Point in Dollar General (DG)

Wells Fargo today maintained an Outperform rating on Dollar General (NYSE: DG) with a modified price target of $53-$58 (from $56-$60). Yesterday shares of Dollar General declined after it reported Q1 results and weak guidance. Analyst Matt Nemer called it a "rare misstep."

"We agree DG could have executed and communicated better, but this remains a high quality growth retailer with strong returns in our view, and this reset of expectations likely provides an attractive entry point after a strong run in the shares," said Nemer.

"We think DG may have had too many balls in the air trying to manage the opening of 165 new stores, relocation of 207 stores, installation of 6,300 coolers in 1,400 stores, installation 2,600 defensive merchandise fixtures (helps prevent shrink), and 2,800 planograms resets, all of which made it difficult to react to the volatile top line environment," he added.

For an analyst ratings summary and ratings history on Dollar General (NYSE: DG) click here. For more ratings news on Dollar General click here.

Shares of Dollar General closed at $48.64 yesterday.

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