UPDATE: Truist Securities Starts Dollar General (DG) at Hold
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Truist Securities analyst Scot Ciccarelli initiates coverage on Dollar General (NYSE: DG) with a Hold rating and a price target of $228.00.
The analyst comments "We think inflation on core necessities like food and gas have an outsized impact on low-to-middle income consumers and additional economic pressure on this demographic could adversely impact Dollar General. In our view, food/gas inflation leading up to the Great Recession caused dollar store comps to go negative. With inflation now outpacing wage growth, we think Dollar General’s sales or mix (consumables outpacing discretionary) may come under pressure. In addition, competitors like Walmart may chase market share rather than passing on rising input prices, which could incrementally pressure Dollar General's sales and/or margins."
Shares of Dollar General closed at $228.65 yesterday.
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