Citi Downgrades Dollar General (DG) to Neutral, 'Risk/Reward More Balanced at Current Levels'

July 14, 2022 5:15 AM EDT
Get Alerts DG Hot Sheet
Price: $238.46 --0%

Rating Summary:
    29 Buy, 10 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 4 | Down: 3 | New: 12
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Citi analyst Paul Lejeuz downgraded Dollar General (NYSE: DG) from Buy to Neutral with a price target of $258.00.

The analyst comments "We are downgrading DG from Buy to Neutral as the stock is within 4% of our TP. Although the company announced a CEO transition this week with COO (and 30 year DG vet) Jeffery Owen moving into the CEO seat, we believe the transition will be smooth (and does not impact our view on the stock). While DG is a defensive stock to own in an uncertain environment, trading at 14.1x F23E EBITDA, we believe many appreciate its defensive characteristics, and as a result DG screens as one of the more crowded longs in our universe (see Fig 1). We continue to believe DG is well-positioned in the current retail landscape both near term and long term, but as one of only 2 stocks that is up on a 3, 6 and 12 month basis (BJ is the other), expectations seem high and upside seems more limited from here."

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 $246.63 yesterday.

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