UPDATE: Goldman Sachs Starts Dollar General (DG) at Buy

(updating comment)

Goldman Sachs analyst Kate McShane initiates coverage on Dollar General (NYSE: DG) with a Buy rating and a price target of $202.00.

The analyst comments "The firm’s strategic positioning is compelling — selling consumables to low-income consumers in predominantly rural areas — and in the aftermath of the pandemic, we believe consumer focus on value is going to be paramount as they trade down and discretionary spend declines. DG’s top-line initiatives should aid its “box-driven” growth, with margins slated to expand from efforts to improve mix and distribution. The recent stock move (+11% vs S&P500 -16% since Feb 19) begs the question: Is it all priced in? We think ‘No’, as we believe the valuation is not fully factoring in a recession, and we see room for the multiple to expand looking at historical benchmarks."

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 $182.02 yesterday.

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