Dollar General Navigating Choppy Waters but Not Sinking Yet, Says Analyst
Portfolio Pulse from Shivani Kumaresan
Raymond James analyst Bobby Griffin has downgraded Dollar General Corp (NYSE:DG) from Strong Buy to Outperform and lowered the price target from $200 to $160. The downgrade reflects a lower near-term earnings outlook due to margin pressure and consumer weakness. Dollar General reported Q2 FY23 sales growth of 3.9% to $9.80 billion, missing the analyst consensus. The company also lowered its FY23 EPS outlook to $7.10 - $8.30 and sales growth to 1.3% - 3.3%. Despite the downgrade, the analyst believes that Dollar General is not a permanently broken business.
September 01, 2023 | 6:24 pm
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Dollar General's stock has been downgraded by Raymond James due to a lower near-term earnings outlook. The company's Q2 FY23 sales growth missed analyst consensus and it has lowered its FY23 EPS outlook.
The downgrade by Raymond James is based on a lower near-term earnings outlook for Dollar General. This is due to margin pressure and consumer weakness, which have led to the company missing its Q2 FY23 sales growth target and lowering its FY23 EPS outlook. This news is likely to negatively impact the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100