UPDATE: BofA Securities Downgrades Dollar General (DG) to Underperform
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BofA Securities analyst Robert Ohmes downgraded Dollar General (NYSE: DG) from Neutral to Underperform with a price target of $190.00 (from $206.00).
The analyst list six reasons for the downgrade:
- Higher gas prices and convenience store traffic recovery could pressure stock,
- Return of grocery store promos pressures 2021 comps,
- Online grocery penetration favors mass players,
- Return of Rx growth could drive share away from DG,
- DG is poorly positioned for wage pressures, in our view,
- DG’s elevated valuation implies room for downside.
Shares of Dollar General closed at $205.04 yesterday.
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