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Fly News Breaks for October 14, 2015
DG
Oct 14, 2015 | 08:41 EDT
Credit Suisse said Dollar General has corrected sharply following the Q2 report. Analyst Edward Kelly said the lack of benefit from the seemingly improving low-income consumer and concerns about the investment in Family Dollar seem to be weighing on shares. Kelly said the Dollar General story looks less robust than a few months ago but history supports the view that low-income consumers may trade up when confidence rises. The firm's analyst believes the outlook for store growth is robust given the improved competitive environment and the combination of better earnings growth, strong free cash flow, and reasonable valuation make shares attractive. Kelly rates Dollar General an Outperform with an $84 price target on shares.
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