Dollar General 'A Top-Tier Retail Name' - Bullish Analyst Upgrades Stock
Portfolio Pulse from Nabaparna Bhattacharya
Barclays analyst Seth Sigman upgraded Dollar General Corporation (NYSE:DG) to Overweight from Equal Weight and raised the price target to $154 from $124. Sigman anticipates a margin recovery through 2024 and potential sales improvements from operational enhancements. Despite addressing inventory issues, the sales outlook remains uncertain due to inflation and consumer behavior. The 2024 EPS forecast was lowered to $7.04, while the 2025 EPS estimate was increased to $8.54. DG shares rose 3.19% to $135.47 following the upgrade.
January 04, 2024 | 7:10 pm
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Barclays analyst upgraded Dollar General to Overweight and raised the price target to $154, citing margin recovery and sales improvements. The 2024 EPS forecast was lowered, but the 2025 EPS estimate was increased. Shares increased by 3.19%.
The upgrade by Barclays to Overweight and the raised price target are strong positive signals for Dollar General, indicating analyst confidence in the company's future performance. The increase in share price following the news reflects market optimism. However, the lowered EPS for 2024 suggests some caution, balanced by the higher EPS estimate for 2025, which may indicate longer-term growth potential.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100